30 June 2017
Media Release - #2017061, 2017

Review into the efficiency and competitiveness of the superannuation system commences

Joint media release
with the Hon Kelly O’Dwyer MP
Minister for Revenue and Financial Services

The Turnbull Government has taken further action to ensure Australia’s superannuation system is as efficient and competitive as possible with the release of the Terms of Reference for the Productivity Commission’s system wide review.

The third and final stage of the review, a key recommendation of the 2014 Financial System Inquiry, is a critical step in ensuring Australians have a better standard of living in retirement. Today, superannuation is a $2 trillion sector. Given the sheer size of the superannuation system, and the fact that it is compulsory, it is imperative that the system is efficient, competitive and focused on delivering the best outcomes for Australians.

The inquiry will use the criteria identified through the Productivity Commission’s Stage 1 study to assess the efficiency and competitiveness of the current superannuation system, including group insurance arrangements. It will also make recommendations on the default fund allocation models, developed as part of Stage 2.

The Government has asked the Productivity Commission to complete the review within 12 months to provide the early provision of the evidence base for future reforms to the superannuation system, with a draft report to be provided to the Government by the end of January 2018.

The Turnbull Government will continue its reform agenda in 2017 by progressing legislation to deliver higher standards of accountability and transparency for superannuation funds to ensure Australians can have confidence in the superannuation system.

The Terms of Reference for Stage 3 of the review can be found on the Productivity Commission website.