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."
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