(Australian Associated Press)
The federal government is looking to bring more competition to the superannuation sector by providing Australians with greater choice of default funds.
“It’s not the fund’s money, it’s not those who run the fund’s money, it’s the workers’ money,” Treasurer Scott Morrison told reporters in Canberra on Tuesday as the government outlined its response to the Murray inquiry into the financial system.
“They shouldn’t be stopped, prevented as they currently are, under various agreements and awards from having their own money going to the fund where they want it to go to.”
The government will ask the Productivity Commission to provide a framework that allows people to make good choices.
“We want to give them the choice about how their own money is being invested,” Mr Morrison said.
Assistant Treasurer Kelly O’Dwyer said many workers covered by enterprise bargaining agreements had no choice when it came to a super fund.
“What we’re saying is that they should be able to choose the fund that is right for them, that’s right for their family, that’s right for their circumstances and they shouldn’t be constrained in that choice,” she said.
The government defended its decision not to limit the ability of self-managed super funds to leverage borrowings.
“At this stage it’s just very early days,” Mr Morrison said.
The government will monitor developments “extremely closely” through regulators and act if necessary.