Prime Minister Julia Gillard has given members of the financial services industry her assurance the entire Labor government is committed to working towards the delivery of a more transparent and efficient superannuation system.
In a speech to members of the Financial Services Council in Sydney yesterday, Gillard said industry and government needed to work together to “strip away inefficiencies” to enable as much money as possible ends up in retirees’ hands.
“Our SuperStream reforms address some of the basic issues of improving the creaking back office of the super industry,” she said.
“On my advice SuperStream could deliver $1 billion worth of efficiencies, as well as giving employees greater peace of mind that their contributions have been paid securely and on time. Let’s get moving on SuperStream – an important part of the productivity agenda for the wealth management industry.”
Alongside SuperStream, she said another reform challenge facing the industry was MySuper. While she said all parts of the superannuation industry had a role to play in MySuper, she acknowledged there were many within the industry that had already responded with simple, commission-free products.
“We as the government have a role to play as well. To listen to your concerns and explain our policies,” she said.
“Our efforts in this respect have been spearheaded by the [Financial Services] Minister Bill Shorten, but I want you to know that my entire government is committed to working with you to deliver a competitive superannuation industry.”
As well as acknowledging the changes the industry had already made in light of reform proposals to the country’s superannuation system, Gillard also said she recognised the issues the industry still faced.
“I understand that the issue of how administration fees will be calculated in relation to MySuper products, as well as the manner in which existing superannuation accounts will be treated following the introduction of MySuper, is a significant matter for all of you,” she said.
“I know the minister is consulting with you and the government looks forward to continuing our engagement with each of you on these important issues.”
