Shorten comes out swinging on default super report

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In response to planners' recent fury, Bill Shorten has launched his defence of the final default super report, stating that it is a ringing endorsement of government reforms.

The details of the report, released on Friday, led Shadow Superannuation Minister Mathias Cormann, to throw a barrage of criticism Shorten’s way.

In a damning assessment of the final report’s findings, Cormann claimed that Shorten had successfully put a stop to moves towards genuine competition in the superannuation default fund market.

Shorten, however, has trumpeted the report’s recommendation that an expert Fair Work Australia (FWA) panel decide on suitable default super funds, issuing a statement claiming that the report “delivers on the government's 2010 election commitment”.

“The report notes that existing default arrangements have provided market stability with the net returns of default funds of 6.4% compared with 5.5 for non-default funds,” it added.

Shorten himself concluded that the report “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".

"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," he added.

According to Shorten, PC recommendations state that members' best interests should be the primary consideration when it comes to default fund selection criteria – and that a superannuation panel within FWA should conduct the reviews, and how that process should occur.

"The government will give careful consideration to the report, and provide a detailed and timely response to the report's recommendations," he said.

"I would like to thank Commissioners Mike Woods, Angela MacRae and Paul Costello, and their team for their work in undertaking this comprehensive review and to all parties that participated in the Review process."

More stories:

Shorten slammed for killing off default super competition

MySuper will cut financial adviser incomes: AFA

  • Gareth Hall on 16/10/2012 1:35:12 PM

    The only conclusion I can draw from this is that Shorten's entire objective is to have as much of the default superannuation pie delivered to Industry Super Funds as is possible. The PC even recommended the end of grandfathering for employers, which means that employers existing superannuation relationships must be changed if their current fund is not nominated by FWA in the award. This is actually a regressive step for super. We can not allow this government to get away with such blatent croneyism. If they were running a business this would not be allowed - they are running the country for heavens sake! God help us!

  • Paul Wiltshire on 16/10/2012 12:55:30 PM

    Is going to be funny also when Most of his cronies will start to discredit FWA to suit their best interests, but then hold FWA reports in high regard when it suits them also. I hope people wake up to this crap coming from within our government and all governing organisations protecting themselves. Time our industry had an open conscious discussion, with everyone involved, planners, CEO's, clients, politicians, Bankers and the public who have never sought Financial advice, so all cards are on the table..... It will never happen when so many rats are running scared across the country.......... Some say I'm a dreamer!

  • Paul Wiltshire on 16/10/2012 12:49:00 PM

    He must. Can someone look into if there is many complaints of bad advice coming from the Industry Super fund members? It would be interesting! But I guess they only give General Advice and Shorten reckons they alone are lifting the standards of Financial planning in Australia. What a joke. Problem is most will probably believe the spin....

  • Conservative accountant on 16/10/2012 11:26:33 AM

    Must think we all came down in the last shower of excreta bulliatis. Hopefully they will implode, get covered in it and turfed out.

  • Paul Wiltshire on 16/10/2012 10:52:36 AM

    Did anyone see Q&A last night. Bill we know your game! You didn't have to make it so obvious last night and discredit planners across Australia. If you get a chance find last nights Q&A on ABC (Not that I didn't expect it to be bias). Shorten makes me sick, he's a well trained puppet, had all the spin and some insults to boot!

  • emel on 16/10/2012 10:52:06 AM

    The quid pro quo for Mr Shorten is that provided he delivers by whatever means available to him, the superannuation funds of this country to the Trade Union movement, he will be offerred the leadership of the party by his Trade Union mates after the next election. He has not the slightest interest in a level playing field this never formed any part of the agenda for him and his Trade Union mates.

  • Conservative accountant on 16/10/2012 10:42:03 AM

    Saw him on Q & A last night ... he would not rule out tampering with super further. That says it all.

  • Richard Moore on 16/10/2012 6:55:05 PM

    If only it were possible to count the votes of professionals in the financial services professions. My gut feeling is that Bill, Julia and their mates would achieve an historically low count - a just reward for the way they have systematically denigrated our integrity and multiplied many fold the red tape and therefore the cost in time and money of delivering great advice to Australian citizens - something on balance we have achieved over many many years.

  • Steve Varhegyi on 16/10/2012 2:03:06 PM

    I watched Q & A last night. All this misogynist rubbish is being used as a diversion. Politicians are always slagging each other. Whilst I'm not a fan of Abbott and would prefer to see Malcolm back, I reckon the misogynist label is inappropriate. He doesn't hate women, just JuLIAR. If hating JuLIAR means you're a Misogynist, then I must be one. I don't know how she got off so lightly from the AWU case with her former employer. Our leaders should be beyond reproach. To me that's far worse than being videoed in front of a 'burn the witch' sign. As for Shorten, why waste your breath? We know what he is and who he represents. Let's just pray that the rest of the electorate don't get distracted from the real issues and vent their spleen at the next election. As they have in the states.

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