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

The amendments to schedule 1 that delay the start date of the stapling reforms by 12 months to 1 July 2022 as put forward by Senator Patrick will be opposed by the government. The amendments to schedule 2 to increase the coverage of the performance test in the YourSuper comparison tool to choice products and mandate the inclusion of administrative fees as part of the performance test and methodology also delay schedule 2 so that the performance test will commence for all products on 1 July 2023. Delaying schedule 1 by even one year means that more unintended multiple accounts will be created in the additional year, which will have a significantly detrimental impact on people's retirement savings. Members' retirement savings will be boosted if action is taken as soon as possible.

On the issue of underperformance and coverage, the performance test isn't relevant for products in which the members themselves select their investment. Further, retirement products have much broader goals, such as income stability and flexibility, as well as longevity risk management. Expanding the coverage of the YourSuper comparison tool will severely diminish the usability of the tool.

On the issue of underperformance of administrative fees, the bill as drafted doesn't preclude the inclusion of administrative fees. Specifying that the regulations must include administrative fees in the methodology would limit the scope for flexibility to respond to changes in the future. On the issue of underperformance and delay, delaying schedule 2 would also delay the commencement of the YourSuper comparison tool and mean that members will remain in underperforming products for an additional year.