Ben Small (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Superannuation, Financial Services and the Digital Economy, Senator Hume. Unlike the Labor Party, which included a retiree tax in its policy platform taken to the last election as just one part of $387 billion in taxes, can the minister advise the Senate on the headline results from APRA's release today of the very first annual superannuation fund performance test and how this forms just part of the Morrison government's plan to not only protect but enhance Australians' retirement incomes into the future?

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

I thank Senator Small for his question—and a very important question it is too. In fact, it's a very important day today for all superannuation members and Australia's future retirees, because today the outcomes of the first annual performance test for MySuper products have been published on the YourSuper comparison tool on the ATO website. This performance test reveals that $56.2 billion of Australians' retirement funds is invested in underperforming products, and these products are held in almost 1.1 million separate accounts. The test assessed the performance of over 80 MySuper products and found 13 of them underperformed, and, as we predicted, it is a mixture of retail, industry and corporate funds that have underperformed.

The Morrison government is hauling performance out of the darkness and into the light, into the bright sunlight of accountability, and it will be very uncomfortable for some of those funds, but it is so important, and let me explain to you why: the Australian superannuation industry has now reached the dizzying heights of $3.3 trillion. That, to put it in context, is bigger than GDP, it is bigger than the ASX and it has doubled in size since the coalition came to government. Reports of superannuation's death have been greatly exaggerated by those opposite. Back when we came to government, we inherited a system riddled with flaws that meant super wasn't delivering on its promise to the 16 million workers and retirees who rely upon it. Since then, the Morrison government has been chipping away at those inefficiencies. We're eliminating the unintended multiple accounts that you allowed to proliferate. We are reuniting lost and inactive and low-balance accounts with their rightful owners. We've banned exit fees. We've capped fees on low balances. We've removed unnecessary insurance premiums particularly for young people who do not need them, and we've empowered all Australians to choose their fund—something you have denied them for years and years.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Small, a supplementary question?

Ben Small (WA, Liberal Party) Share this | Link to this | Hansard source

I do have a supplementary question. In light of the fact that Australia's superannuation pool is now larger than GDP, arguably connecting Australians to their own money in superannuation has never been more important. So how can Australians access the YourSuper comparison tool—

Senator Watt interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

Order, Senator Watt.

Ben Small (WA, Liberal Party) Share this | Link to this | Hansard source

and how has the take-up of the tool been since it was launched?

Senator Watt interjecting—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Watt, I have repeatedly asked for silence during the question. Senator Hume.

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

Well, at present, Australian households pay around $30 billion a year in superannuation fees. Now, to put that into context, it's actually more than the $27 billion that households spend on energy bills and the $12 billion that they spend on water bills.

It's now easier than ever for Australians to ensure that they are not being ripped off by their fund, with the introduction of the YourSuper comparison tool. More than 275,000 Australians have in fact already accessed the YourSuper comparison tool in just the two months since it was launched, and we know that many more Australians will now use that tool to compare their super fund after those performance results were released today. Finally, superannuation members can compare apples with apples. It's so simple to use: just jump on your search engine and look up 'super comparison tool'. Click on the ATO website, and, the next thing you know, you'll be comparing funds. You can even personalise it—your fund; your balance—through the ATO portal, through the MyGov website. It's never been easier. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Small, a final supplementary question?

Ben Small (WA, Liberal Party) Share this | Link to this | Hansard source

SMALL () (): Because the Morrison government stands for protecting, preserving and enhancing the retirement incomes of Australians, can the minister outline what the consequences will be for those funds that fail the performance test two years in a row? And what reactions has the government received from stakeholders in the super sector to these important performance measures?

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

This is an extraordinarily important question, because, if your superannuation fund is failing, there are very serious consequences. Funds are now required to notify their members—to notify you—of their underperformance, by 27 September this year. Funds must provide members with the details of the YourSuper comparison tool, so that members can then consider whether a different product would better suit their needs.

The Australian Prudential Regulation Authority has now also written to superannuation funds whose products fail or marginally pass that performance test, setting out their supervisory expectations. This will include APRA assessing the credibility of funds' plans to improve their performance and to lower their fees. Importantly, products that fail the annual performance test two years in a row will be closed to new members until their performance improves. That means they will not be allowed to take on new members, who would suffer from the continual underperformance. APRA have made their position clear: trustees of the 13 products that have failed the test now face an important choice— (Time expired)

Michaelia Cash (WA, Liberal Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be now placed on the Notice Paper.