The Federal Government has released the Productivity Commission’s (PC) final report into default superannuation funds in modern awards, concluding the existing arrangements have provided market stability with health returns.

 

The report found that default superannuation funds had delivered a 6.4 per cent return compared with 5.5 per cent for non-default funds.

 

This report also endorses the Government's MySuper and financial advice reforms, including the provision of intra-fund advice, which the PC considers important in equipping members with the skills and knowledge to make decisions about their super,” Minister for Financial Serivces and Superannuation Bill Shorten said.

 

"The report notes that the disclosure requirements for MySuper products will enhance comparability between products and are expected to improve understanding of superannuation product offerings."

 

The Productivity Commission's recommendations go to the criteria for assessing superannuation funds for inclusion as default funds in modern awards, that members' best interests should be the primary consideration, that a Superannuation Panel within Fair Work Australia should conduct the reviews and how that process should occur.

 

The full report can be found here