Gov't reassures on super value
The Federal Government has sought to reassure Australians about the continuing validity of superannuation in the face of the negative returns being revealed in member statements being mailed this month.
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, said that while global economic conditions had had a significant adverse impact on returns it was important to remember that over the past 35 years the average Australian superannuation fund had delivered real returns of around 4 per cent over and above inflation.
He said the long-term nature of superannuation allowed superannuation fund trustees to manage market volatility over time through a progressive rebalancing of their investment strategies in response to market conditions.
Bowen’s comments came at the same time as the Federal Opposition accused the Government of failing to deliver on initiatives, such as the central clearing house, because it had become bogged down with too many investigations and policy reviews.
The Opposition spokesman on Financial Services, Chris Pearce, specified the Government’s failure to deliver on a superannuation central clearing house by July 1, this year, despite $16 million having been allocated for the project in last year’s Federal Budget.
AUTHOR
Mike Taylor
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