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SMSFs drive super system change

SMSF sector

The success of the SMSF sector is driving competition within the wider super industry, a senior government minister has said.

The SMSF sector plays a key role in the superannuation industry and is essential to the federal government’s commitment to providing choice for Australians saving for their retirement, Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume said today.

Speaking at the SMSF Association 2020 National Conference on the Gold Coast, Hume said the importance of the SMSF sector, which has doubled since 2006 and now holds almost a quarter of all superannuation assets, could not be overstated.

“I don’t think it should come as a surprise that the Morrison government is highly committed to a vibrant SMSF sector as part of our wider plans, our broader plans, to build a stronger, more efficient superannuation system,” she said.

“We’re committed to an SMSF sector that continues to offer individuals choice, one that is efficient, one that drives product innovation and, ultimately, one that delivers the best outcomes for the more than 1 million Australians who manage their own super – who choose to manage their own super.”

Citing Productivity Commission’s superannuation report, which revealed around 15 per cent of members who switched funds in 2017 went to an SMSF and a growing number of people were establishing SMSFs at a younger age, she said the success of the SMSF sector was driving competition within the wider super industry.

“We’re seeing some Australian Prudential Regulation Authority-regulated funds respond to this by developing products with SMSF-style features when it comes to the range of choices of investments offered,” she noted.

“Choice, of course, is the fundamental tenet of this government’s approach to superannuation.

“This government, the Morrison government, believes fundamentally that SMSFs are an integral part of the superannuation ecosystem.”

Last month, the Financial Services Council called for parliament to amend the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 to ensure all employees had the benefit of superannuation choice.

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