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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.
Industry Super Australia
Dud for-profit super funds can go on charging up to four times the median fees if a crucial government performance test is not strengthened, costing Australians up to $160,000.
The government’s Your Future, Your Super legislation does not include administration fees and other non-investment charges in its performance benchmarks.
This gives poor performing retail products a leg up, which on average have administration fees 75% higher than the median MySuper member. Administrative fees which gouge a staggering 1.02% from member balances could fly under the radar.
Even a small difference in administration fees cost can be significant to a member’s final balance. In the MySuper sector – assuming the same returns – the fund with the lowest administration fees would deliver a full-time worker in their 30s almost $160,000 more than a fund with the highest.
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Coalition MPs have been urged to vote down the governmentâs planned overhaul of the $3 trillion superannuation sector, with Labor warning a proposal to let the treasurer block investments by funds could set a dangerous precedent for corporate Australia.
The Morrison government unveiled major super reforms in last yearâs federal budget to make the retirement sector more accountable, limit the creation of multiple super accounts and cut fees.
Labor financial services spokesman Stephen Jones: âWe are unaware of another instance where, during peacetime and without any national security concerns, a Treasurer has been given the power to cancel an investment decision.â