The Institute of Public Accountants (IPA) welcomes the study by the Productivity Commission into the competitiveness and efficiency of the Australian superannuation system.
“Without a legislative definition and clarity of purpose and being able to measure achievement of purpose, the system cannot deliver the outcomes which we need to support an ageing population,” said IPA chief executive officer, Andrew Conway.
“This leads to policies which are often inconsistent, complex, costly, inefficient, and based around budgetary considerations.
“With the upcoming Budget expected to tinker even more with superannuation, the need to clarify the goals and purpose of superannuation becomes even more imperative.
“The IPA believes that the objectives of Australia’s superannuation system should be based around three main themes which take account of both social and fiscal considerations.
“These are based on adequacy to ensure that all retirees have a replacement income which provides a minimum “standard of living”; sustainability, so the system can support itself financially and be capable of delivering retirement benefits into the future; and integrity, which means a transparent system which is well governed and regulated and has the confidence of the public.
“To increase competition and efficiency we need more consumers to be engaged with their superannuation. At the very least, consumers should be able to adequately compare fees and returns with other similar funds on a like-for-like basis, which means information needs to be disclosed in a more effective way.
“In addition, we believe that consumer financial literacy needs to be vastly improved,” said Mr Conway.
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