The Productivity Commission's review into the
competitiveness and efficiency of Australia's superannuation
system is underway with public consultation now
Industry participants will be relieved, however, that this first
round of consultation will not produce anything drastic – the
Productivity Commission is only consulting on its present mandate
to develop assessment criteria by November 2016 ahead of a full
review into the superannuation system to commence after 1 July
2017, on which we have
Accompanying the call for public submissions is an
issues paper to highlight relevant research and market issues
as a guide for those making a submission to the public
consultation. Although the Productivity Commission has posed a wide
range questions on the topics of competition and allocative,
operational and dynamic efficiency, we anticipate a wide divergence
in public opinion on many of the questions posed, including:
What is the degree of substitutability between different types
of superannuation funds and products?
How would you measure the extent of competitive pressure from
the SMSF segment on the rest of the superannuation system?
What are the most reliable and relevant assessment criteria for
benchmarking operational efficiency of the superannuation
What elements of regulation have the greatest effect on the
operational efficiency of the system and which aspects of
operations are affected?
How can the magnitude and cost of principal-agent problems be
What are the most important behavioural biases and cognitive
constraints affecting the key superannuation saving, investment and
withdrawal decisions of users?
What are the key impediments to dynamic efficiency and how
could they be measured?
Submissions can be made to the Productivity Commission's
consultation until 20 April 2016. If you would appreciate
assistance in making a submission, please contact a member of our
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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