Richard Watts discusses the implications of the Productivity Commission’s recommendations to change the default super arrangement.
There’s been some big shake ups in the world of super in the past six months. And one of the biggest is the Productivity Commission’s call to change the way workers are channelled into default super funds. At the moment, the default fund is most often an industry fund but the recommendations pave the way to give retail funds a bigger slice of the $7 billion a year super pie.
Instead of the current system where unions and employers choose the default fund, the PC recommends that Fair Work Australia or another independent body choose who qualifies to be a default fund.
Richard Watts, from Industry Super Network, tells 3Q that he is receptive to a merit based system if it means retail funds meet the same governance arrangements and produce returns equal to the industry funds.
Read Essential's ongoing research on the public response to Covid-19.Download this week's Report
Two Party Preferred:
In this week's report:
- Performance of Scott Morrison
- Performance of Anthony Albanese
- Preferred Prime Minister
- Federal Budget expectations
- Most important areas for increased funding
- Economy: Direct investment vs trickle-down approach
- Priority for the upcoming budget
- Indicators of whether the Australian economy is in a good or poor state