BT Financial Group (BT) welcomes the release of the Productivity Commission’s (PC) final report into the efficiency and competitiveness of Australia’s superannuation system.
The PC’s two-year examination of the superannuation system is arguably the most in-depth and evidence-based assessment of the system since its inception.
The PC has concluded that current structural flaws in the system are harming millions of consumers, and the impact is regressive. Adopting the PC’s recommendations would benefit consumers to the tune of $3.8 billion each year, and result in the average new job entrant today having $533,000 more when they retire.
BT continues to support the PC’s key recommendations on superannuation – the ‘best in show’ proposal and only ‘defaulting once’ for new entrants to the workforce – and we applaud the PC’s new recognition of the value of life-stage investing.
BT General Manager of Superannuation Melinda Howes said: “The report presents a unique opportunity for both sides of politics to agree a bipartisan model of superannuation regulation.”
“Overall, the PC has put aside the ideology that undermines the industry and has crafted recommendations that are in the best interests of consumers.”
“It is pleasing that the PC’s evidence-based recommendations are for the assessment and selection of default superannuation funds based on merit. A merit-based selection process is the best way to get the superannuation system onto a stable and bi-partisan regulatory framework.”
“It is time for the industry to show leadership and deliver on its promise. Any superannuation fund that believes it performs strongly, is well governed and delivers good member outcomes should embrace the PC’s proposals.”
In total the PC has made 31 recommendations which BT will take time to consider in detail.
Media release (PDF)