Superannuation
Stage 2: Alternative default models
Public inquiry
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 Efficiency and Competitiveness 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.
Final Report
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 developed 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 considered:
- 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.
