The Government should act immediately to improve the competitiveness of default superannuation arrangements rather than waiting a year for the Productivity Commission review, according to Shadow Assistant Treasurer and Shadow Minister for Financial Services and Superannuation Mathias Cormann.
Coalition members of the Parliamentary Joint Committee on Corporations and Financial Services (PJC) recommend that any authorised MySuper product should be able to compete freely in the default superannuation market, Cormann said.
"The current closed shop, anti-competitive arrangements for the selection of default superannuation funds through Fair Work Australia set up by the Labor Party are a national disgrace," Cormann said in a statement.
He said the current process is not transparent, not competitive and inappropriately favours union-dominated industry super funds. Minister for Financial Services and Superannuation Bill Shorten has been too slow to act, and has been favouring the vested interests of his friends in the union movement rather than standing up for the public interest, Cormann said.
Since any authorised MySuper product must comply with consumer protection requirements, there is no need for an additional "secretive and discredited process through Fair Work Australia" to further determine which MySuper products should be included as default funds under various modern awards, Cormann said.
