In a world where there is a single price for MySuper, funds will be forced to provide the one product at the same price to all workplaces – whether they have 30,000, 3000, or 300 staff. As research from Chant West shows, 750,000 Australians will pay more for their super. It is absurd that the Government’s superannuation reforms could result in people paying more for their superannuation. And the proposal for a single investment strategy in MySuper means default super cannot by law be tailored to meet the demographic needs or demands of individual workplaces. This too is an absurdity. Presently, a younger workplace, such as a supermarket, would typically have a default superannuation investment with a higher exposure to growth assets, whereas an older workplace might have a higher exposure to defensive assets. The current proposal completely ignores the fact that 25 per cent of corporate superannuation plans today use a non-standard investment strategy that reflects workplace demographics. One product, one price, one investment strategy is a retrograde step that will hurt working Australians. Once the Stronger Super and FoFA reforms are implemented, the Government must rule a line under reviewing the financial services sector to provide businesses and consumers with certainty.

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