Morrison says industry fund performance is no “leave pass”

27 November 2015

The Federal Treasurer, Scott Morrison, has sent a clear message to the industry funds sector that the past performance of their funds does not allow them the privilege of not adopting improved governance standards.

Addressing the Association of Superannuation Funds of Australia (ASFA) annual conference in Brisbane, Morrison said the Government did not doubt or quibble about the investment performance of industry funds but said this performance did not represent a leave pass with respect to improved fund governance arrangements.

He said he believed superannuation was far too important to be "a free lunch for vested interests in this country".

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Morris said it needed to be remembered that superannuation was about the superannuation.

The Treasurer also reinforced the Governmebt's view that superannuation had to increasingly supplant the Age Pension by allowing increasing numbers of people to be independent in retirement.

"Becoming a self-funded retiree is one of the most important objectives," he said.

"The prize of independence in retirement is a prize worth aspiring to."

Morrison made clear the Government was open to a range of changes to the super regime including changes to contribution caps for those encountering disadvantage and the level of tax concessions.

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Clever politics by Morrison. Like most people inside the industry, I'm sure he knows that union fund performance comparisons are misleading and deceptive, because they compare themselves to old style retail funds with built in advice costs, not to the newer retail funds that have advice costs unbundled.

But this is an argument that the union PR flunkies and their ALP mouthpieces will twist and spin to eternity, so why not just take it out of play by saying it's not relevant! Well done.

Well said could not agree more.

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