Stage 2: Alternative Default Models
The public inquiry examines alternative models for a formal competitive process for allocating default fund members to products. In the context of receiving the terms of reference for the stage 3 inquiry into the Competitiveness and Efficiency of Australia's Superannuation System, the Treasurer has agreed that the stage 2 inquiry be incorporated into and finalised as part of the stage 3 inquiry.
- Issues paper 20 Sep 2016
- Draft report 29 Mar 2017
- Final report Aug 2017
The issues paper covered a range of issues on which the Commission seeks information and feedback, and was intended to assist you in preparing a submission.
Initial submissions were due by 28 October 2016.
The draft report was released on 29 March 2017. You were invited to examine this draft report and comment on it by written submission by 28 April 2017.
A final inquiry report from stage 2 will not be issued separately. The stage 2 inquiry will be incorporated into and finalised as part of the stage 3 inquiry.
The Commission is to develop a workable model, or models, that could be implemented by Government if a new model for allocating default fund members to products is desirable. The developed model(s) should enhance efficiency in the superannuation system in order to improve retirement incomes, including through optimising long-term net returns to members.
In developing alternative models, the Commission is to consider:
- international practice
- costs and benefits of different mechanisms
- the robustness of the process
- efficiency and innovation over the long run
- the effect on system stability and market concentration
- who should run the process
- the extent to which the process promotes the interests of consumers
- regulatory impediments to optimal competition.
More detailed information can be found in the terms of reference.