Call for inquiry into SuperStream costs
A key superannuation industry body has called for a comprehensive independent review of the costs associated with implementing a cornerstone of the Government's Stronger Super policy, SuperStream.
In a submission to the Treasury, the Association of Superannuation Funds of Australia (ASFA) has expressed concern at the cost of implementing the SuperStream initiative.
"With respect to the specifics of the proposed financial industry levies for 2013-2014, we note with some concern that the funding required with respect to SuperStream ($99.5 million) represents an amount which is approximately 86 per cent of the operating costs for all of APRA ($115.6 million). We query how this can possibly be the case," the ASFA submission said.
"APRA is responsible for the prudential supervision of Authorised Deposit Taking Institutions (ADIs), General Insurance, Superannuation and Life Insurance and Friendly Societies. As at 30 June 2011 it employed over 600 Full Time Equivalent (FTE) staff. We query how the SuperStream costs for 2013-14 can be roughly equivalent to the cost of running a department of over 500 FTE.
"When it comes to the costs with respect to the superannuation industry in 2013-14, the costs for APRA are $34.1 million; ATO $7.3 million; ASIC $12.0 million and DHS $4.4 million, totalling $58.7 million. In this context the SuperStream levy represents 1.7 times the total of all of the other costs with respect to superannuation combined," the ASFA submission said.
"While we welcome the Treasury annual evaluations of the SuperStream initiative, given the magnitude of the amount of the SuperStream costs, especially with respect to IT, we would submit that an independent, comprehensive review of these costs be performed and published as a matter of urgency," it said.
AUTHOR
Staff Writer
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
