Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has today held high level discussions with the Superannuation Advisory Group on key issues in superannuation. Discussions focused on different methods for determining an overall retirement income goal for Australians and better ways to report superannuation returns.
The Superannuation Advisory Group was established in March to provide the Government with an ongoing means of direct consultation with the superannuation industry and to act as a sounding board for the Government on key superannuation issues.
"Labor, as the party of superannuation, has long been engaged on the issue of superannuation and how best to achieve an adequate retirement income. The Rudd Government's review into the taxation system, while excluding tax free payments for the over 60s, will involve examining ways to improve our retirement incomes system including the role of taxation and the age pension."
The group also had detailed discussions on how best to communicate the long-term nature of superannuation to fund members, taking into account the recent market volatility, and the possibility of negative returns for some members at the end of this financial year.
"A focus on reporting short-term returns by super funds has affected what many members expect from their fund. Too little focus has been on the longer term and some members may react unwisely by switching their super to supposed 'safe havens' like cash or lower risk investments, resulting in lower long-term returns. Some may move to another fund based on inadequate information," Minister Sherry said.
"The Group confirmed an industry view that members need to be educated that super is a long-term investment and that a negative or poor return due to market conditions in any one year is not a signal to change strategy."
"A greater focus on reporting long-term performance by super funds will help members, which is why the Rudd Government recently moved to examine whether a retirement benefit projection, valuing the member's current savings at retirement, should be included in fund statements. In this way, members could track their own savings efforts."
"I would like to take this opportunity to thank members of the advisory group for their ongoing and valuable input to superannuation policy discussions," Minister Sherry said.
Superannuation Advisory Group Members
- Senator the Hon Nick Sherry (Chair), Minister for Superannuation and Corporate Law.
- Ms Jo-Anne Bloch, Chief Executive, Financial Planning Association of Australia.
- Associate Professor Marilyn Clark-Murphy, Head of the School of Accounting, Finance & Economics at Edith Cowan University.
- Mr Richard Gilbert, Chief Executive, Investment and Financial Services Association and Chairperson of the International Investment Funds Association.
- Mr John Maroney, Chief Executive, Institute of Actuaries of Australia.
- Mr Terry McCredden, Chief Executive, Telstra Super Pty Ltd.
- Professor John Piggott, Associate Dean Research, Australian School of Business, University of New South Wales.
- Ms Andrea Slattery, Chief Executive, Self Managed Super Fund Professionals' Association of Australia Ltd.
- Ms Pauline Vamos, Chief Executive, Association of Superannuation Funds of Australia.
- Ms Rosemary Vilgan, Chief Executive, QSuper Board of Trustees, QSuper Limited and Government Superannuation Officer.
- Mr Garry Weaven, Chair of Industry Funds Management.