No end in sight for super fight By Lachlan Maddock 28 April 2021
A barrage of criticism has seen the Morrison government make major alterations to its Your Future, Your Super reforms. But by backing down from a fight, can they really avoid it?
The government’s sweeping changes to the YFYS reforms are likely to be met with much relief from within the superannuation industry. The indices against which funds will be benchmarked have been modified to ensure that allocations to infrastructure don’t see them unfairly penalised, while administration fees will now also be included in the performance test.
But it’s an abrupt about-face for a government that just months ago was insisting that it was impossible to objectively measure the impact that admin fees had on returns.
A million super accounts may not be up to scratch under major reforms
Major changes to the Federal Government s superannuation reforms could see an extra one million accounts fail to make the grade.
The Government already had underperforming super funds under the spotlight with its controversial Your Future Your Super reforms, but has added extra protections to counter criticisms.
The reforms initially targeted funds that were deemed to be under-performing.
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A million Australian superannuation accounts could be underperforming under new reforms by the federal government.(Getty Images/iStockphoto)
But, in changes announced today, administration and investment fees will also be included in judging a fund s performance. That could mean an extra one million accounts won t pass the test.
To fee or not to fee: The bitter stoush over super costs
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Australians pay about $30 billion a year in superannuation fees – more than their electricity and gas bills combined. This startling figure was touted by the federal government as they revealed plans in the 2020 budget to cut super expenses, reduce duplicate accounts and weed out underperforming funds.
There’s no argument every dollar spent unnecessarily erodes workers’ super balances, reduces the benefits of compound growth and leaves workers with less in retirement. But finding the best way to reduce fees and increase competition has become the subject of significant debate as the Your Future, Your Super legislation nears a vote.
Inquiry probes super funds for home ownership data
Inquiry probes super funds for home ownership data
A parliamentary inquiry has come up empty after pushing super funds for information on members’ home ownership, while questions have been raised around the agenda of the committee chair.
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A new round of recently released super funds’ answers to questions on notice from the House of Representatives standing committee on economics has shown a focus on retirees’ housing status.
Funds ranging across the retail and industry segments have had to answer questions on whether they invest in residential property, build-to-rent housing and social housing as well as give information on the rates of home ownership among members.
To fee or not to fee: The bitter stoush over super costs theage.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theage.com.au Daily Mail and Mail on Sunday newspapers.