John Brogden, chief executive of the Financial Services Council (FSC), says the Government has won its approval by “land[ing] on a balanced and measured package”.
“The improvements are a big win for a more competitive and flexible MySuper,” Brodgen said in a press release.
“This is a great outcome for the 2.2 million Australians in corporate superannuation plans as it means their super strategy will continue to be tailored to their specific needs.
“The staff profile of one company can be very different from the next and these differences would never have been appropriately catered for in a one-size-fits-all approach.”
The FSC are pleased the Government will adopt the tick-a-box account consolidation for balances greater than $1000, a recommendation highly lobbied by the FSC.
“The package also confirms the Government’s support for SuperStream…aimed at streamlining the back office of superannuation, which will save $20 billion over the next decade,” said Brogden.
Pauline Vamos, chief executive of the Association of Superannuation Funds of Australia (ASFA), says the reforms have been “long-awaited” as it will affect all aspects of the superannuation industry.
“The advent of MySuper and increased ‘back of house’ efficiences through SuperStream will deliver better retirement outcomes for most Australians,” she said in a press release.
She says in comination with the Future of Financial Advice (FoFA) reforms, Stronger Super will enable more Australians to access financial advice.
“These reforms protect the financial interests of those who are not engaged with their super as well as respond to the overarching need for the industry to be set up to deal with the growing pool of retirees.”
Steve Tucker, group executive of MLC & NAB Wealth, says aspects of the policy such as the opt out consolidation measure will drive efficiencies across the industry and simplify the super system.
“Importantly, these reforms will not stop superannuation members benefiting from scale and continuing to access the low fees currently available through large corporate super plans,” Tucker said in a press release.
“Whilst we support the intent behind low cost, no frills default funds, we need to ensure it is not at the expense of innovation and competition in the industry and we believe the announcement today strikes this balance.”
Tucker says the opt out consolidation measure for accounts under $1000 is a sensible outcome and will drive efficiencies across the industry.
Melaine Evans, head of superannuation and platforms at BT Financial Group, says the Government has recognised the need for super to be flexible as “it’s imperative there are a range of solutions to meet a wide range of needs”.
Evans said in a press release that the complexity of the Australian superannuation system, which has be charging unnecessary fees through multiple accounts will finally be one that Australians can easily understand and engage with.
