The Charter Group, announced last week by Minister for Financial Services and Superannuation Bill Shorten, has been created to consult on the establishment of the recently-announced Council of Superannuation Custodians.
But CPA Australia chief executive Alex Malley said he was sceptical about the group’s ability to deliver “the sustainable superannuation system Australia needs for the future”.
“Outcomes will depend entirely on how the terms of reference are constructed and implemented, and the scope of the consultation,” he said.
“Even then, how much the Charter Group can effectively achieve by overseeing the establishment of a Council of Superannuation Custodians is also debatable,” said Mr Malley.
Instead, Mr Malley called for an “entire national savings review” to look into Australia’s retirement savings policy – something he said was “beyond the scope” of the Charter Group.
CPA Australia research has found that Australia’s superannuation system is currently “unsustainable” and “failing to meet its policy intent”, he added. “Much more urgency and a much stronger vision for our superannuation system is needed,” Mr Malley said.
The CPA boss also criticised the make-up of the group, which includes former AustralianSuper chair Elana Rubin; former MLC chief executive Steve Tucker; Australian Prudential Regulation Authority deputy chair Ross Jones; former Cooper Review chair Jeremy Cooper; and former Federal Court judge Alan H Goldberg.
“The Charter Group certainly consists of a very high calibre of people from within or who have hailed from the superannuation industry,” Mr Malley said, “but to be a success, we believe the group should include more members from outside the industry – this will ensure that it doesn’t just protect vested interests but works in the interests of the Australian people.”
The formation of the Charter Group has also been criticised by Institute of Public Accountants IPA chief executive Andrew Conway as well as by members of the self-managed superannuation fund (SMSF) industry for failing to include SMSF professionals in the group.
