Thinktank Reported Reduction of Several Underperforming Super Funds and Also the Fees Under Coalition Reforms

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The number of underperforming superannuation funds has been reduced, and fees have been cut due to Coalition reforms, a new report by the Grattan Institute think tank has found.

The report, released on Thursday, found that the average fee charged by super funds had fallen from 1.3% to 1.1% since the Coalition came to power in 2013.

The report also found that the number of underperforming super funds had decreased from 11% to 5%.

“This is good news for Australian workers and retirees,” said John Daley, CEO of the Grattan Institute.

“The reduction in fees will save Australians billions of dollars over their working lives, and the increase in performance will mean that they will retire with more money.”

The report comes as the federal government is considering changes to the superannuation system, including a proposal to raise the age at which people can access their superannuation from 60 to 65.

Superannuation Minister Kelly O’Dwyer said, “The government was “open-minded” about the proposals put forward by the Grattan Institute.”

“We want to make sure that Australians have access to their hard-earned retirement savings when they need it, and we will continue to consider all options in this space,” she said.

Shadow Treasurer Chris Bowen said Labor would oppose changes to the superannuation system that would disadvantage workers.

“The fact is, the Coalition has a track record of making changes to superannuation that disadvantage workers,” he said.

“We saw that with their changes to the tax treatment of superannuation in 2016, and we saw it again with their decision to freeze the indexation of the super guarantee.”

“For a young worker starting their career in an underperforming fund, the lower fees they now pay will translate into a $20,000 boost to the super balance by the time they retire.”

The Grattan Institute report comes as the Productivity Commission investigates the superannuation system’s efficiency and competitiveness.

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