img

Final Productivity Commission Report into Superannuation

Media Releases

Date : 10 January 2019

Author: The Hon. Josh Frydenberg MP

THE HON JOSH FRYDENBERG MP
Treasurer

THE HON STUART ROBERT MP
Assistant Treasurer

 

MEDIA RELEASE

10 January 2019

FINAL PRODUCTIVITY COMMISSION REPORT INTO SUPERANNUATION

The Liberal National Government has today released the final report by the Productivity Commission into the efficiency and competitiveness of Australia’s superannuation system.

This report was commissioned by our Government just over three years ago. With significant changes in Australia and our workforce since the compulsory superannuation system was introduced in 1992, this review is critical to ensuring that the 15 million Australians with more than $2.7 trillion in superannuation savings are getting the best possible outcome for their retirement.

The final report found that while our superannuation system has served Australians reasonably well, there are significant issues that need to be addressed.

The Productivity Commission identified the prevalence of high fees, a significant number of unintended multiple accounts, chronic underperformance by some funds and a lack of effective competition particularly in the default fund system. The Commission has outlined 31 recommendations to improve the system.

With their proposed changes the Productivity Commission finds that members could be $3.8 billion better off each year. This would leave a 55 year old worker today $79,000 better off in retirement, and a new entrant into the job market $533,000 better off at retirement, or about double what their retirement balance could otherwise be.

The Government will carefully consider the recommendations and will await The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry’s Final Report before finalising our response to the Productivity Commission’s report.

Significantly, the Commission endorses many of the Government’s superannuation reforms that are currently before Parliament and will deliver better outcomes for members, including:

It is time the Labor Party stopped blocking these amendments, listens to consumer advocates, independent experts and support what the Commission calls “must have” common sense reforms that put the interests of members first.

The Government thanks the Commission for this report. The report is available here.

@JoshFrydenberg on Twitter JOSH ON TWITTER