The Government welcomes the final report of the review into the governance, efficiency, structure and operation of Australia’s Superannuation System (the Cooper Review).
In May 2009 the Government commissioned the Cooper Review to provide it with recommendations on how to make superannuation simpler, safer and more efficient.
“Australia’s superannuation system has performed well over the last 35 years, generating an average return of five per cent over inflation. However, with challenges such as the ageing of the population, we must improve the system for the future,” Mr Bowen said.
“Every dollar we save in unnecessary fees and costs will help Australians’ retirement savings go further.”
The Government welcomes the MySuper and Superstream initiatives which could lower fees by 40 per cent, lifting the retirement savings of a worker on average wages by $40,000.
“We also have to make it easier to do simple things like consolidate multiple accounts, compare different funds and pay superannuation for your employees,” Mr Bowen said.
“The Cooper Review is the third stage of the most significant reforms to superannuation since national superannuation was introduced.”
The three stages of reforms to superannuation are:
- The Future of Financial Advice reform package which applies to financial advice generally, including advice relating to superannuation products;
- The Government’s Stronger & Fairer Superannuation reforms, including an increase in the Super Guarantee to 12 per cent boosting the retirement incomes of 8.4 million Australians; and
- The Government’s response to the Cooper Review.
“A considerable amount of consultation went into the preparation of the report, as demonstrated by over 450 formal submissions. The Government will now consider the final recommendations of the report before providing its response and looks forward to consulting the industry on the key proposals.
“I would like to thank Jeremy Cooper, the Chair of the Panel, the other Panel members, the Secretariat, superannuation industry representatives and members for their valuable contributions. I would also like to acknowledge the work of my predecessor Nick Sherry.”
Copies of the report are available at www.supersystemreview.gov.au.