NSW Liberal back-bencher, Senator Andrew Bragg has continued his campaign for a single default fund and for people to be able to access superannuation for a first home deposit.
In a webinar sponsored by the Financial Services Council, Bragg told actuary, Michael Rice, that the Government should provide a basic default product through an organisation which would provide a cheap and cheerful and outsource funds management to the Future Fund.
“Because the Future Fund has investment management credentials this is an easy thing for us to establish,” he said.
What is more, Bragg claimed that if default superannuation had been established by the former Fraser Liberal Government rather than the Hawke/Keating Labor Governments it would have looked very different.
“My view is that we are so heavily invested in this scheme we need to have the best deal possible,” he said. “We would have had this if the Fraser Government had implemented superannuation rather than the Hawke/Keating Government.”
Bragg said that he believed that the superannuation industry needed to be open to the debate around allowing people to access super to purchase a first home, rather than be trenchantly closed to the issue.
“I’m not saying this is something for the silvertails, it is for those who are doing it tough,” he said.
Bragg also suggested that the Government’s hardship early access scheme should not necessarily end with the resolution of the COVID-19 pandemic, and that there should be room for a repeat exercise, if necessary.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
Two totally different issues, mixed into one.
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