So that's problem number one.Second, the Panel thinks we need a product that suits most members better, that's simpler to use, easier to keep track of, easier to compare with other products and is better value for money for the members.And the third problem we're addressing is that competition in this industry, in the superannuation industry, has not effectively driven prices down far enough or created the efficiencies that we think are quite easily available to it. We think a levy on average of five basis points is the right model, at the lower end of the scale. [inaudible] equivalent of a one per cent extra boost to your savings over time. Press Conference: Julia Gillard & Chris Bowen - Legislation to restore … We continue to govern in the meantime and that means that I'll be working through the normal processes, consulting, and I'll be making further announcements about the Government's position. As the Minister said, the potential longer term savings for MySuper, we think, when you add them with the benefits of Superstream, add up to $2.7 billion a year. We need to ensure that we're testing widely and we're gathering every case of community transmission, as well as those cases which have come in from overseas before travel bans were in place. So we thought it was appropriate to extend that onwards, and I think that was the right decision.Is it still uncertain times for pending retirees and retirees?Well, certainly the volatility in the world share market could continue, when you look at some of the things coming out of Greece and Europe more generally. Let me give you a few more: What they are claiming credit for now and what they are expecting a standing ovation for today is that instead of adding $326 billion on their watch until 2021, they will be adding $303 billion in gross debt.That means an extra $303 billion in gross debt on this Government's watch.
We've embarked on some very substantial reforms: the Future of Financial Advice, the improvements to superannuation and now this.
Well I think Jim very clearly outlined the deterioration of the debt situation on this Government's watch.
The slowing in the world economy and the reduction in our terms of trade and the softening in the economy has meant a reduction in our forecast government revenue of $33 billion over the next four years. The key answer to that question is that only a MySuper fund, only a fund that meets the MySuper criteria, would be able to be offered to employees as a default fund.
This economic update confirms what we already knew about economic management under the Turnbull Government, about the twisted priorities of the Turnbull Government.
A lot of people find that difficult at a time when you're going through the stress of changing jobs to then sit down and be filling out forms to move your superannuation account around, etcetera.So anything we can do to encourage that greater engagement would be a good thing for Australians and for the economy generally. It'll make it a lot easier for employers to feel comfortable that they have actually selected the right product for their employees.Mr Cooper, on the MySuper, is it a product that the funds offer as a basic product called MySuper[inaudible] or is it offered by one fund?It's certainly not offered by one fund. Thank you very much. We choose to argue the opposite. As you know, the IMF conducted a public review of Australia's financial system that concluded that Australia should develop a financial stability fund with a financial stability levy as a matter of high priority.
We are laying out all the financial details. CHRIS BOWEN, SHADOW MINISTER FOR HEALTH: Thanks for coming this morning. The review released a series of draft recommendations and reports over the last 12 months, and of course over the last 12 months I've been engaged in extensive consultation with the superannuation industry about those recommendations.The release of the final report today now enables me to enter into more intensive and focused discussions and consultations with the superannuation industry and with the broader community about these recommendations.The objective is clear: a simpler, more efficient, better streamlined superannuation system for the benefit of all Australians; to boost the retirement incomes of Australians and boost the national savings pool, which is good for individual Australians and very good for the nation. And what we have to remember is today our superannuation system sits at about $1.3 trillion in retirement savings. It's more use of e-commerce and a thing we call auto-consolidation, which is where you've got more than one account, you'll be automatically asked whether you want to merge those accounts together.The next thing we need to remind ourselves is that superannuation is compulsory. We've chosen not to cut the services that Australian families rely on - that is the Liberal approach. The fact of the matter is that their own decisions, clear in this document, their own decisions are worsening the Budget bottom line. Of course, not every bank chief executive or not every bank, but certainly I have mentioned and consulted on this matter.Now, unsurprisingly, people in Australia's banks would prefer that the taxpayer continued to provide the guarantee with no charge to banks.
After due consideration, they advised the Government that it was a good thing to establish such a fund for Australia.
What are the things we need to do in order to position the system and the members to have a superannuation system of that size?In very simple terms, the current day challenges are the back office of superannuation – that is, all the paperwork, getting the money in, getting the money out and so on – it needs a very good clean up, as the Minister said.