Bowen defends Stronger Super costs

stronger-super/taxation/funds-management/mysuper/superannuation-funds/superannuation-fund/superannuation-guarantee/industry-funds/westpac/

16 July 2013
| By Staff |
image
image
expand image

People who find themselves being charged higher fees within superannuation funds should look for a better deal, according to the Federal Treasurer, Chris Bowen.

Responding to questions on radio about reports that some superannuation fund would be passing through some of the increased costs associated with MySuper and other Stronger Super initiatives, Bowen pointed to the number of superannuation providers who had indicated they would not be passing through the costs.

"I've seen that (reports of higher charges) and there are other companies I've noticed — Westpac, particularly — today saying they're not doing that and they don't see any need to do that," he said.

"The reforms that have been introduced will save superannuants over the long run a lot of money. So we've not only increased the superannuation guarantee from 9 to 12 [per cent], but we've put in a lot of efficiencies, a lot of changes, and measures to reduce the eating away of superannuation over time by complex administration," the Treasurer said.

"Now, I've seen some firms say that they're going to pass some of the administrative costs on to their customers or their members. I think that's, you know, that's a matter for them. It's unfortunate," he said. "Their members can have a look at what other firms are willing to do, because I've seen Westpac out there saying they won't do it, industry funds saying they won't do it; so that's a matter for their members to look at and check and make sure that they're getting a good enough deal."

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?...

1 month 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 ago

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

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS