The federal coalition has labelled the Productivity Commission's review into default superannuation funds within modern awards as too little too late.
Speaking with Investor Weekly, opposition assistant treasury spokesman Mathias Cormann said the government had long been aware of the unfairness of the way in which default funds had been nominated within modern awards and had taken too long to do anything about it.
"Labor recognised that the current process was not competitive, not objective and not transparent before the last election and promised this Productivity Commission review a long time ago. We think the government has had a go-slow strategy on this important and necessary reform for too long now," Senator Cormann said.
"It should have long happened. The current review should not have to take the best part of 2012."
He said he did not believe anything meaningful or lasting would come out of the review.
"Even after the Productivity Commission has finally reported, we have no confidence that Labor will then act on any recommendations and ensure an open, transparent and competitive process for the selection of default funds under modern awards," he said.
Despite castigating the government for its tardiness on the review, Cormann was adamant about what the opposition would like to see come out of the process and effectively what the coalition would implement should it form government.
"We want all Australians to be able to benefit from genuine choice and competition in super. Only the most efficient, the most transparent and the most competitive superannuation system will ensure Australians can maximise their retirement savings through their superannuation," he said.
"Currently, Australians in default super funds are channelled into funds selected by Fair Work Australia through a secretive, non-transparent process, which appears riddled with internal conflicts.
"Quite frankly, we should just be getting on with it. We should ensure that all Australians, including those in default super, can benefit from the most efficient, the most transparent and the most competitive superannuation system possible."
A spokeswoman for Financial Services and Superannuation Minister Bill Shorten rejected suggestions the modern awards process was unfair, claiming all superannuation funds had equal opportunity to nominate for selection in awards and participate in the negotiation process.
"The government has commissioned this review in response to a recommendation of the Super System Review (Cooper review) that the processes by which default funds are nominated in awards be reviewed by the Productivity Commission to assess whether they are sufficiently open and competitive," the spokeswoman said.
"While there will always be differences of opinion on the role of modern awards, this review seeks to address concerns with the openness and competitiveness of the process by facilitating greater assessment and comparison through transparent and objective criteria.
"Transparent and objective criteria will enable parties to the modern awards process to assess and select the best-performing superannuation funds for nomination as default funds. The industrial relations system and awards have a rich history in superannuation, which the government believes should continue to assist employers determine the best funds for their employees covered."
The government said the eight-month timeframe for the Productivity Commission review was relatively shorter than usual reviews and would involve a thorough examination of the issue.
