A report calling for the abolition of hidden superannuation fees and commissions has been given to the federal government, with a response promised within weeks. Labor is expected to legislate for a default super scheme that would cover 80 per cent of workers, in the biggest industry shake-up since the advent of compulsory super in 1992.
The fee-free accounts, known as My Super, would be banned from charging hidden fees and giving commissions to financial advisers. Fee-free super report handed to govt June 30, 2010 - 8:59P A report calling for the abolition of hidden superannuation fees and commissions has been given to the federal government, with a response promised within weeks.$H|OME$
Labor is expected to legislate for a default super scheme that would cover 80 per cent of workers, in the biggest industry shake-up since the advent of compulsory super in 1992. The fee-free accounts, known as My Super, would be banned from charging hidden fees and giving commissions to financial advisers.
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Super system review chairman Jeremy Cooper has previously suggested extending fee-free rules to all super products, covering 80 per cent of Australians.
The contents of his final report have been handed to the government, with Superannuation Minister Chris Bowen promising to release a response soon.
"I'll be releasing it in the not too distant future," he told ABC Radio.
"I won't be releasing it today, but I won't be sitting on it for weeks either." Mr Bowen said reforms to lower super fees would enable Australians to live with a more comfortable retirement income and boost national savings. "That will be a change for the better," he said.
The three-part review has also recommended changing privacy laws so tax file numbers could be linked to lost super accounts. But the government is unlikely to adopt a separate recommendation calling for super accounts to be divided into categories known as universal, disengaged, choice and self-managed.
The proposal was designed to minimise fees but retail, industry and non-profit super funds united to campaign against the idea. The year-long review received 450 formal submissions, amounting to almost 7300 pages of opinions, ideas and data. More than 200 of the submissions came from individual super fund members.
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