3 years ago
MINISTER IN HIDING OVER ADMIN FEES
STEPHEN JONES MP
Assistant Minister for Superannuation Jane Hume has to answer one simple question about her proposed changes to Super – Why does the Government’s performance benchmark ignore billions of dollars in administration fees some funds charge members?
No amount of bluster will obscure the fact that these fees represent the lion’s share of costs to members, as the Productivity Commission has made clear.
Australians pay the second-highest admin fees in the world as a proportion of total investment, eating into savings and undermining performance.
Industry experts have put the Government on notice that their changes will leave super fund members thousands of dollars worse off.
Yet she continues to claim that the Government is somehow on the side of members and lower costs.
When will the Assistant Minister front up and explain how ignoring these fees helps improve transparency?
Background
The Government’s proposed superannuation performance benchmarks will only measure investment fees (shown below in blue) and not administration fees (shown in green) against investment returns.
The following graphs are from the 2018 Productivity Commission inquiry into superannuation.
No amount of bluster will obscure the fact that these fees represent the lion’s share of costs to members, as the Productivity Commission has made clear.
Australians pay the second-highest admin fees in the world as a proportion of total investment, eating into savings and undermining performance.
Industry experts have put the Government on notice that their changes will leave super fund members thousands of dollars worse off.
Yet she continues to claim that the Government is somehow on the side of members and lower costs.
When will the Assistant Minister front up and explain how ignoring these fees helps improve transparency?
Background
The Government’s proposed superannuation performance benchmarks will only measure investment fees (shown below in blue) and not administration fees (shown in green) against investment returns.
The following graphs are from the 2018 Productivity Commission inquiry into superannuation.