The Government has defended the manner in which it has included administration fees in Your Future, Your Super superannuation fund performance tests in the face of criticism that it will favour laggards.
Being questioned during a Financial Services Council (FSC) webinar today, the Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume acknowledged the issue but said that the move to include the cost of administration fees would ultimately further strengthen the arrangements.
What is more, Hume said that a Treasury assessment of the inclusion of the administration fees had not significantly altered the picture of the number of funds that were underperforming.
FSC deputy chief executive, Blake Briggs had asked Hume whether the manner in which administration fees had been included in the super fund performance arrangements might have served to disadvantage funds which had acted quickly to address high fees while advantaging laggards.
He asked whether the changes had simply served to make those funds look better.
Perhaps another way to ask the question is: “Will this catch out those funds who have arranged their business model around skimming member returns through over-inflated Administration fees?”
Answer: “Undoubtedly”