The Association of Superannuation Funds of Australia (ASFA) said the measures announced in the 2020 Federal Budget represent a significant change to the architecture of Australia’s superannuation system.
ASFA supports measures to lift standards for MySuper in order to improve retirement outcomes for superannuants, and how these changes are made needs to be carefully considered.
“We don’t suffer from a shortage of good funds and we need to ensure that these measures don’t reduce competitive intensity or damage the nation building role of superannuation,” said ASFA CEO Dr Martin Fahy.
“In the absence of the release of the Retirement Income Review and the lack of specificity in the Budget papers, it is unclear how the changes will work in practice or what the implications will be for competition, efficiency and incumbents in the sector.
“We need to avoid reducing the complexity of MySuper to a singularity without any reference to the nuance of member preferences and long-term fund performance,” Dr Fahy added.
As always the devil is in the detail and ASFA commits to working with the Government to deliver strong retirement outcomes.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.