The Federal Government has signalled its prepared to pursue bi-partisan support for identifying a common objective for superannuation.
The Assistant Treasurer, Josh Frydenberg declared the Government’s willingness to pursue the objective in an address to the Financial Services Council (FSC).
Acknowledging the recommendations of the Financial System Inquiry (FSI) with respect to a common objective, the minister declared his view was “that a carefully drafted objective – with bipartisan support – would have positive benefits for the stability and accountability of the system and those who play a role in it”.
Frydenberg also pointed to the Government’s determination to pursue governance changes in the superannuation sector, referencing the commitments made ahead of the 2013 Federal Election.
“This means making sure there is an appropriate number of independent directors on superannuation fund boards, helping improve decision-making by broadening the range of skills,” he said.
Frydenberg also confirmed the Government’s determination to open up the default superannuation regime, saying that he had previously stressed “the importance of genuine competition in the default superannuation market”.
“More competition means there is more pressure on funds to gain business and be more efficient,” he said. “This puts downward pressure on fees, and can lead to better outcomes for consumers.”
