POLICY in the PUB
From: Wednesday July 16, 2014, 5:15 pm
To: Wednesday July 16, 2014, 6:15 pm
POLICY IN THE PUB The Economic Society is setting up a new event Policy in the Pub. We are hoping to meet monthly in a friendly and informal environment and discuss some of the significant policy issues and challenges that are around. All Society members are welcome to come along. The first event will be held at 5.15 PM, Wednesday 16 July at the Elephant and Wheelbarrow, 94-96 Bourke Street. Dr Jim Minifie from the Grattan Institute will present Super Sting: why Australia’s superannuation fees are high, why it matters and how to get them down. Below is more detail on the presenter and the presentation Theme Reforming how superannuation fees are set could be the largest single opportunity for micro-economic reform in the Australian economy. Australians are paying up to three times more than they should for superannuation, damaging their retirement balances and hurting taxpayers. High fees are not justified by high returns: Australian funds that charge the highest fees consistently deliver lower returns than other funds once their fees are taken out. Fees are too high because the system relies on retail account holders to drive them down. But this approach has not worked in Australia or anywhere in the world. Superannuation is opaque for many people, who do not make an informed choice, instead paying into a default fund chosen by their employer. Two main reforms will reduce the cost of superannuation. Government should establish a tender for the right to run the best-priced default fund for new job starters, and the tax return process should allow taxpayers to match their fund with the low-cost winners of the default tender – and to switch on the spot if they choose. Based on the following Grattan report, released in April, by Jim Minifie, Jim Savage and Tim Cameron. http://grattan.edu.au/publications/reports/post/super-sting-how-to-stop-australians-paying-too-much-for-superannuation/ Jim Minifie has led the Productivity Growth program at the Grattan Institute since 2012. Prior to that he spent 14 years at the Boston Consulting Group, 7 as Chief Economist (Aust & NZ). He has degrees from Melbourne and Stanford universities.
Elephant and Wheelbarrow
94-96 Bourke Street, Melbourne