End commissions before increasing super guarantee
|
|
Industry superannuation funds claim they want the Government to fix planner remuneration via commission and tax issues before it moves to lift the superannuation guarantee to 12 per cent.
The message is contained in an Industry Super Network (ISN) briefing note, which argues that increasing the superannuation guarantee "without addressing the inequitable tax concessions and efficiency drags of the commission system would be a sub-optimal policy outcome".
ISN executive manager David Whiteley claimed next year would be a crunch time for Australia's superannuation system and that it was imperative to "fix unsustainable leakages in the system caused by trail commissions and other inducements to financial planners".
"Increasing contributions with the system as it currently is will only increase leakage," he claimed. "It is estimated nearly $5 million a day is being gouged from hard working Australians' retirements through commissions paid to financial planners."
Whiteley said in circumstances where the Government would be next year weighing up the recommendations of three substantial reports into the superannuation and financial services industry, it needed to address conflicted remuneration structures.
Recommended for you
A strong demand for core fixed income solutions has seen the Betashares Australian Composite Bond ETF surpass $1 billion in funds under management, driven by both advisers and investors.
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
