CANBERRA, July 24 (Xinhua) -- The Australian government on Monday flagged wide-ranging changes to the nation's superannuation system, the first in almost 25 years when contributions to one's superannuation funds were made compulsory.
Announcing the government's intentions on Monday, Financial Services Minister Kelly O'Dwyer said Australians would be given greater control over their superannuation, something she said would "give everyday members much more confidence that their funds are being used in their best interests."
Speaking to the Australian Broadcasting Corporation (ABC), O'Dwyer said the government would also give the Australian Prudential Regulation Authority (APRA) new powers to identify issues and intervene in the regulation of super funds.
"There aren't enough protections to ensure that superannuation is being managed in the best interests of members," O'Dwyer said.
"We need to give everyday Australians more control over their superannuation providers and we need to have an even stronger regulator to make sure the foundations are right."
Under the changes, Australians will also be able to "opt-out" of costly extra expenses within superannuation contributions, such as life insurance which many Australians might not know they have.
"You'd be horrified to learn that in today's day and age, a lot of people can't simply pick up the telephone or get on line and simply opt-out," O'Dwyer said.
"This is particularly a problem for younger people with part-time jobs, maybe working for a supermarket, and a lot of those younger Australians don't realize that they're paying premiums that they will never get the benefit of."
