Sep 22, 2011

Shorten crafts a major reform on compulsory super

Bill Shorten looks like ushering in a major Labor reform to superannuation. And he even has the industry backing him.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Bill Shorten has produced a major reform, and a major Labor reform, in yesterday’s Stronger Super announcement. Better yet, he’s actually got the fractious financial industry to back it. Even if key parts of the government’s separate Future of Financial Advice reforms hit the fence courtesy of gullible independents and the Coalition’s bloodymindedness, Stronger Super marks an important step forward on compulsory super.

Within a matter of years, no one will be paying commissions on their compulsory superannuation accounts unless they choose to, and no one will be left wondering why the super fund they ended up courtesy of their employer in is performing so poorly.

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6 thoughts on “Shorten crafts a major reform on compulsory super

  1. [email protected]

    “Westpac’s BT Bus Super fund, which underperformed inflation — i.e. you’d have been better off putting your contributions under your bed”

    This is incorrect. Just because you underperform inflation does not mean you would be better off putting money under your bed. Say inflation is 3%. If you receive a 2% return in a fund then that is higher than the 0% return you would get leaving money under your bed, irrespective of the rate of inflation.

    For you to be better off leaving the money under your bed you would need a negative return.

  2. Mark from Melbourne

    Good god, you dont mean to say that this contemptuous toe rag of a government has managed another significant reform? What will the media and the oppo’s make of this.

  3. zut alors

    Shorten is adding to his CV.

  4. Caroline Armstrong

    Bernard, can you tell us if there is a difference between ‘lost’ super and ‘inactive’ super accounts?

    There are ‘lost’ funds where the owner and TFN is known.

  5. Sean

    About time, these reforms should have been in place years ago, possibly from the outset when Keating and the unions conceived of compulsory super. I notice Keating never really seemed to care about the problems once the scheme was introduced.

  6. Phen

    Does anyone have the link for where you can check individual funds’ relative performance, without it being a paid reporting service?

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