The Federal Treasurer, Scott Morrison has attacked superannuation default funds as being nothing more than a fire hose of money, pouring money into accounts for which the funds themselves do not have to work.
Speaking to the media, Morrison signalled the Government would be strongly backing the Productivity Commission’s (PC’s) recommendations around default funds.
Reinforcing the Government’s recent action on superannuation, Morrison said the Government had been pursuing greater levels of account consolidation and had banned exit fees but then pointed to the Productivity Recommendations around default funds and super fund board governance.
“We want there to be more choice in superannuation. We want there to be more transparency in how superannuation funds are managed. We'd love to see more independent directors on superannuation fund boards,” he said.
“We would like the Productivity Commission's recommendations they've made about default funds and how workers can be shoehorned into funds without any choice,” Morrison said.
“I mean, that's not good. The job of superannuation funds shouldn't be to sit at the end of a big fire hose of money, pouring money into their accounts and not having to work for it. It is important that consumers should have choice and that is what we want to give them,” the Treasurer said.