Tasmania’s largest locally owned and based profit-for-members super fund has welcomed the Productivity Commission investigation into efficiency and competitiveness.
CEO of Tasplan Super, Wayne Davy said while the organisation was yet to digest the full detail of the 700-page report, any initiatives which encourage better returns for members, improve fund performance and reduce fees were to be welcomed.
“Super is our nest egg for our future retirement, with the aim of ensuring people can live comfortably when their working life comes to an end, so any initiatives that can increase the amount of super is to be welcomed,” Mr Davy said.
“Removing unintentional multiple super accounts could mean thousands of dollars in additional savings for members, while for young people entering the workforce today, the Productivity Commission predicts over $500,000 in extra savings by the time they retire.
“These extra savings have the potential to be really meaningful and as such the Productivity Commission report is worth taking very seriously, especially for those just starting to enter the workforce.”
Mr Davy said as a profit-for-members super fund, Tasplan has always been transparent with its fees and charges, but as the Banking Royal Commission has shown, for-profit funds have not been as open and transparent with their charges, so any moves in this area would see better outcomes for consumers.
“If Tasmanians have learned anything out of the Banking Royal Commission, it’s that there are super funds run by banks to make a profit and there are industry super funds, such as Tasplan which are run solely for the benefit of their members,” Mr Davy said.
“The Royal Commission has made it clear that industry-based funds, such as Tasplan have a much better track record when it comes to fees and charges.”
Mr Davy said any initiative that encouraged better financial returns to members was also to be welcomed, but cautioned against any radical approach to changing the way funds operate.
“Obviously it’s important to ensure super funds deliver the best financial returns for members,” Mr Davy said.
“Any system that can promote better performance should be encouraged, but sometimes funds can take a number of years to generate strong returns and so financial returns must be looked at over the longer term such as five to 10 years, rather than a simplistic year on year comparison.
“Super savings are about taking a long-term compounding approach to savings and so when comparing fund investment return, a long-term view must also be taken.
“However, overall I applaud the Productivity Commission for producing this report as any initiatives to make super easier, reduce fees and encourage better investment returns is welcomed by Tasplan and the 50 per cent of the Tasmanian workforce that we represent,” Mr Davy said.