What's In and Out of the Review?

04/09/2009

The Scope Paper indicates that there are four main factors influencing the value of superannuation savings:

• The performance of investment markets and economic cycles – this is outside the scope of the Review.
• The taxation and key design features of the super system - this is also outside the scope of the Review.  These issues are being considered by the Henry Tax Review (apparently now known as the AFTS Review -  Australia’s Future Tax System Review) and so the Super Review will not consider whether the super tax rate should be lowered or whether the preservation age should be increased.
• The efficiency of the super system – this is the primary focus of the Super System Review – to critically review the efficiency of the system, regulatory arrangements, competition, industry structure, market forces, fees and charges and technology.
• Investment decisions made by members – this is also a primary focus of the Super System Review and will consider the details of the current system as it applies at the level of the individual consumer.  This aspect of the review will deal with such issues as the availability of choices in super and the information, advice and incentives that affect individual super consumers.
• However, issues relating to lost member accounts and clearing house proposals to improve the efficiency of the contribution payment system (on which the Government has already stated its policy) will be outside the scope of the review.
• Contribution rates (ie SG rate), longevity risk, preservation ages are outside the Scope of the Review.  The Government has already stated its position on the 9% contribution system.