The Federal Government may have delivered key changes to the Australian superannuation environment in last year’s Federal Budget, but the latest IUS/Super Review Super Outlook survey revealed the industry is looking for more.
The survey, conducted in November and December last year by independent economic consultancy Classical Economic Analysis, delivered the Government top marks for its 2006 Budget changes, but clearly indicated that further change is warranted.
One hundred per cent of survey respondents rated the Budget as either ‘excellent’, ‘very good’ or ‘good’, with no one choosing to give it a negative assessment
What is more, 100 per cent of survey respondents also believed the Budget had made superannuation a more attractive investment option for Australians.
However, their responses to other questions in the survey suggested the Government needed to move further in terms of dealing with the crucial issues confronting the superannuation industry, not least in terms of simplifying the regulatory burden.
One of the key findings in this year’s survey is that superannuation is over-regulated and most respondents believe this is something that could be addressed by moving to a single regulator.
The survey also revealed the continuing, significant divide between the superannuation industry and financial planners.
While nearly 95 per cent of respondents believe financial planners were an integral part of the superannuation environment, there are clearly lingering issues over the quality of advice when planners are paid by way of commission.
What is more, the industry seems strongly resistant to planners being allowed to extract commissions where advice is related to the standard 9 per cent superannuation guarantee.
Another key question addressed in the survey was whether superannuation funds should be able to expend money on television advertising campaigns, with a narrow majority of respondents believing that such expenditure is inappropriate.
