The federal government has started the third and final stage of the review into the efficiency and competitiveness of the superannuation system, with the draft report due by the end of January 2018.
In a joint statement from Revenue and Financial Services Minister Kelly O’Dwyer and Treasurer Scott Morrison, the government said it had taken further action with the release of the terms of reference for the Productivity Commission’s system-wide review.
The review was a key recommendation from the 2014 Financial System Inquiry.
The inquiry will use the criteria identified through the Productivity Commission’s stage one study to assess the efficiency and competitiveness of the current super system, including group insurance arrangements.
It will also make recommendations on the default fund allocation models, developed as part of stage two.
The government has asked the Productivity Commission to complete the review within 12 months to provide the early provision of the evidence base for future reforms to the super system, with the draft report to be provided to the government by the end of January 2018.
In undertaking its assessment, the commission will evaluate the accumulation, transition and retirement phases of super, as well as default, choice – including SMSFs – and corporate fund member segments.
The government will also continue its reform agenda in 2017 by progressing legislation to deliver higher standards of accountability and transparency for super funds to ensure Australians can have confidence in the system.
The Productivity Commission is to assess the efficiency and competitiveness of the super system and make recommendations to improve outcomes for members and system stability.
It is also tasked to identify, and make recommendations to reduce, barriers to the efficiency and competitiveness of the system.
The assessment should be based on the five system-level objectives, 22 assessment criteria and 89 corresponding indicators set out in the stage one report.
“Today, superannuation is a $2 trillion sector,” O’Dwyer and Morrison said.
“Given the sheer size of the superannuation system, and the fact that it is compulsory, it is imperative that the system is efficient, competitive and focused on delivering the best outcomes for Australians.”
