Deanne Stewart, Aware Super chief executive, has pushed for a more stable superannuation system amidst wide industry changes.
On a recent podcast with board advisory company Blenheim Partners, Aware Super chief executive Deanne Stewart examined the underlying issues facing the super industry.
As one of the largest Australian super funds, Aware Super held more than $155 billion in funds under management with over 1.2 million members.
Stewart identified the degree of volatility permeating investment markets as the primary concern for the super fund.
In addition, she recognised significant industry changes as another main consideration when looking forward, caused by regulatory and governmental developments.
“Digesting those regulatory changes is still front and centre for a lot of super funds, alongside huge industry consolidation,” the Aware CEO explained.
The Government’s decision to raise the concessional tax rate for super balances exceeding $3 million, from 15% to 30%, was one of these major developments. The news brought wide division on the issue and whether it would lead to more equity or complications.
“Trying to create a stable superannuation system where the rules of the game don’t change every year is a really critical element,” she added.
Alongside the Government also releasing the consultation paper for the definition of super, Stewart believed that clarifying this purpose would help mitigate instability.
Moreover, the chief executive urged for greater synchronisation between the Government, businesses and investors. This would further create a sustainable long-term vision for the Australian super system, particularly when addressing climate change.
Disclosing corporations’ climate change policy was greatly supported by Aware Super.
“As you’re looking to invest in corporates, you need to know what the risks are. Climate change is undoubtedly, for our generation and for the next period of time, one of the largest risks.”
Changing member expectations was another factor shifting the super landscape, according to Stewart.
“Members are expecting things to be instantaneous, that they can look at their phone and be able to do everything they want.”
Stewart recognised that the industry traditionally had not been as nimble in adapting to technological developments, but enhancing the client experience through digital options was a key focus for Aware Super.
The CEO hinted at a new digital platform to be launched in the next month, which would allow Aware members to access an all-inclusive app from their mobile devices.
