FSC renews calls for more competition in super to reduce fees

The Financial Services Council (FSC) has used comments by the Assistant Treasurer to renew its calls to have the market opened up to its members.

It believes this will increase competition and bring fees down.

FSC’s chief executive Sally Loane said: “The Government’s proposal is in the best interests of consumers and should be implemented as a matter of priority.”

Her statement follows the Assistant Treasurer’s announcement on Friday that he was examining options to “generate the strongest possible competitive forces for the benefit of every superannuation fund members”.

Loane added: “On average, Australians are paying higher superannuation fees despite the fact that the size and scale of super funds have increased significantly.”

“All Australians should have the right to choose the best performing super fund − something that will inject much needed competition in the industry.”

Chant West analysis shows that average superannuation fees are 0.92 per cent.

The FSC was keen to highlight a number of its member companies have lower than average fees in the default MySuper options, such as Bendigo MySuper at 0.65 per cent, ANZ MySuper at 0.60 per cent and AMP MySuper at 0.85 per cent.

However, SuperRatings shows that out of the top five super funds with the lowest fees, based on a $50,000 account balance, three were industry funds – Energy Industries Superannuation Scheme Super, First State Super and AustralianSuper.

Proponents for industry super funds are also vocal in pointing out that over 1, 3, 5, 7 and 10 year periods they have outperformed retail funds.

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