The Federal Opposition has committed to working with the financial services industry and the regulator, the Australian Prudential Regulation Authority, to develop better performance benchmarks for superannuation funds.
The commitment was made by the Opposition spokesman on financial services, Senator Mathias Cormann, who said such information would represent a vital underpinning for necessary changes to the default funds under the modern awards regime.
He said new industry-wide benchmarks and definitions would include information to help employers – particularly small businesses – select default funds.
Cormann’s undertaking has come at the same time as submissions lodged with the Productivity Commission have revealed a substantial divide within the superannuation industry between the retail funds sector and the industry and not-for-profit funds.
While both sides of the argument have backed performance as being the most important criteria for the selection of default funds, submissions lodged by individual industry funds and the Australian Institute of Superannuation Trustees have argued against all MySuper funds being eligible for selection as default funds.
The industry funds submissions have argued for a continuing role for Fair Work Australia, with Hostplus actually arguing that the number of eligible MySuper funds would make the process too complicated for employers.
For its part, the Financial Services Council has argued there exists little requirement for the involvement of the industrial judiciary, and that all MySuper funds should be eligible for selection.
Cormann said the Coalition supported all MySuper funds being capable of selection as default funds.
"There is no need for an additional secretive and discredited process through Fair Work Australia to further determine which MySuper products should be included as default funds under various modern awards," he said.
