O’Dwyer urges Royal Commission super scrutiny
The Minister for Revenue and Financial Services, Kelly O’Dwyer has sought to point the Royal Commission towards some of key negative findings of the Productivity Commission’s most recent report into the superannuation industry.
Speaking on Melbourne radio, O’Dwyer said she was confident the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry would look at the issues raised by the PC.
“… I'm very confident that the Royal Commission, who have in its terms of reference superannuation, will come to this,” she said. “We'll have a look at it. I'm sure that the Productivity Commission's report will be very useful in looking at all of the issues that do exist.”
“The truth is, I think a lot people in the superannuation industry don't recognise the fact that this is members' money. It belongs to them, it does not belong to the Government, it does not belong to employers, it does not belong to the union movement, it belongs to the members and it should be protected for them,” O’Dwyer said.
“It needs to be spent in their best interests, it shouldn't be mis-used and the Productivity Commission has been very clear in saying that things need to change.”
The minister claimed some sections of the superannuation industry had been encouraging people not to engage too closely with their superannuation, and this had been encouraged by former governments.
“… I think the truth is that the superannuation industry has had payments made to it though the superannuation guarantee for about 27 years now, and that's money that's just flowed on in and the superannuation sector has said, 'Leave it to us, don't worry about it. Don't pay any attention to it. We don't need to be monitored too closely,’” O’Dwyer said. “And, unfortunately, that's what many Governments have in fact done.”
The minister also took a swipe at Federal Opposition leader, Bill Shorten and his period in her portfolio, claiming he had made regressive changes such as uncapped fees and default insurance coverage.
Recommended for you
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.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
