Stats say super fund members are hurting: Sherry

commissions/superannuation-funds/cent/APRA/government/

28 July 2003
| By Freya Purnell |

Shadow minister for retirement incomes and savings, Senator Nick Sherry, has pointed to figures released last week by theAustralian Prudential Regulation Authority(APRA) on superannuation membership and contributions as evidence of the impact of “poor returns, high taxes and corporate collapses” on superannuation funds in Australia.

The statistics, from APRA’s Superannuation Trends report, show that total superannuation assets fell by 1.7 per cent to $507.7 billion for the year to 31 March 2003, while member contributions were down 17.4 per cent compared with the prior year.

“The decline in member contributions, which are largely voluntary, reflects the negative returns, corporate collapses and ongoing concerns about taxes and excessive fees, charges and commissions,” he says.

However statistics from the report also showed that employer contributions for the year to March 2003 increased by 12.4 per cent, largely driven by the increase in the compulsory superannuation guarantee, which moved from 8 per cent to 9 per cent on 1 July 2002.

Small fund assets grew by 2.4 per cent during the March 2003 quarter, and retirement savings accounts and industry funds also experienced growth.

To repair public confidence in superannuation, Sherry has called on the Government to act urgently to lower the tax on contributions, improve the regulation of fees, charges and commissions, and provide full compensation in the event of theft, fraud and corporate bankruptcy.

Sherry also highlighted the quarter’s 1.2 per cent increase in member accounts, now standing at 25.5 million accounts for 9 million fund members, to support Labor’s call for automatic consolidation of accounts to reduce the number of accounts, save administration costs and allow members to find lost superannuation assets.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 6 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 4 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND