The Australian superannuation industry is making some noise again over the Government’s pending “choice bill” which will allow people to switch between super funds more easily. The Government has put the bill on hold while it concentrates on the war in Iraq, but that hasn’t stopped many super funds from protesting, anyway. They say the measure will cost employers up to $60 million in the first year, and won’t necessarily result in higher payouts for retirees.   

The Association of Superannuation Funds of Australia's (ASFA) Director of Policy Research, Michael Anderson, told a parliamentary conference the choice of funds will come at a price and the Treasury’s estimate of a $27 million cost to employers is “unrealistic”.

ASFA CEO Philippa Smith says Assistant Treasurer Senator Helen Coonan’s refusal to compromise on the bill is “short-sighted”.

“Measures which will assist growth in members’ savings should not become a victim of partisan politics,” Ms Smith said. “We urge the parties to negotiate and deliver.”