Silence greets Government choice ads
By George Liondis
The Federal Government’s multi-million dollar advertising campaign on superannuation choice has failed to arouse consumers, adding to fears that few will be prepared to change funds come July 1.
Assistant Treasurer Mal Brough said in Canberra last month the Government’s super choice hotline, which is heavily promoted in the ads, had registered only 15 per cent of the expected number of calls.
Brough said the low volume of calls could be an early indication that few people will switch funds when choice is introduced on July 1.
Of the people who had contacted the hotline, 85 per cent simply wanted a copy of the Government’s super choice information booklet.
“From July 1, I don’t expect the world to change. In fact, I don’t expect much to change at all,” he said.
Speaking at a conference of Financial Planning Association (FPA) members, Brough acknowledged that the complex and lengthy Statement of Advice (SOA) documents that financial planners were required to produce under the Government’s Financial Services reforms were adding to the confusion for consumers.
However, he said planned changes to the requirements, announced by Parliamentary Secretary to the Treasurer Chris Pearce earlier this month, would aim to fix the problem before the introduction of choice.
“What most people want to know is pretty simple things to allow them to make decisions they can understand,” he said.
“As it currently stands, the documents don’t help that at all. What we need is something that is practical and also provides the safeguards.
“I’m sure Chris Pearce, my colleague, will deliver that. This is very important given where we are on superannuation choice.”
Brough also confirmed the Government would push ahead with the planned establishment of a permanent Financial Literacy Foundation, to replace the existing Financial Literacy Taskforce.
The Government has allocated $5 million a year to run the foundation, but will also provide a one-off $16 million grant for it to run a large-scale advertising campaign.
Financial planner and media commentator Paul Clitheroe, who has been selected to sit on the board of the foundation, said its aim would be to establish a “basic hygiene” level of financial literacy for all consumers.
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