The Government has been guilty of conducting a "superficial" consultation process with respect to defining the objective of superannuation, according to Industry Super Australia (ISA).
ISA has used a submission to the Senate Standing Committee on Economics reviewing the Government's legislation to argue that the proposed approach significantly misses the mark and ignores the broad view of the industry.
"The proposed objective before the committee does not enjoy widespread confidence and support," the ISA submission said.
"It is the result of a superficial consultation process in which the Government has failed to secure the ‘broad agreement' recommended by the Financial System Inquiry".
Further, the ISA submission claimed that the Government's approach had not responded to the many criticisms contained in the 100 submissions received by Treasury.
"Regrettably the minister has not engaged with or sought agreement on a proposed objective that enjoys broad industry and stakeholder support," it said.
The ISA's submission reflected an industry-wide view that the Government's proposed objective, to provide income to supplement the age pension, sets the bar too low.
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.