Super shock: Minister Kelly O’Dwyer industry, calls for cultural change (and fails to recall her own details)
The Australian Tax Office has been ordered to help people find lost superannuation accounts amid a damning productivity commission report into the super industry.
There are 10 million multiple accounts chewing through $2.6 billion dollars in fees and charges.
Many of these accounts are under-performing default funds, created each time someone starts a new job.
“This looks to be on a level even greater than we’re seeing in the Royal Commission into banks.”
– Neil Mitchell
Financial Services Minister Kelly O’Dwyer told Neil Mitchell an overhaul was long overdue.
“The PC has made it very clear that superannuation funds have often been working in their own best interests and not the interests of members,” she said.
Ms O’Dwyer said a cultural change was required — “I think we all know we need to be more connected to our superannuation,” she said.
But it became clear even the minister wasn’t sure about the details of her own superannuation account when Neil asked what deal politicians received.
“I think it’s about 15 per cent, I would have to confirm that,” she admitted.
“To be honest with you Neil I didn’t go into politics for superannuation nor the money.”
Neil: “Isn’t that interesting, though. You don’t know.”
Click PLAY to hear the interview
Ms O’Dwyer said not keeping tabs on your super accounts could have enormous costs.
“The productivity commission says for someone starting out at 21 (years of age), it could mean around $400,000 — I mean, it’s a huge number,” she said.
“If everything goes wrong, which it can do, you can be substantially out of pocket.”
“The super stuff today is frightening.”
– Senator Derry Hinch, talking with Neil Mitchell later this morning