Retired Australians are set to be tens of thousands of dollars better off under changes to superannuation laws passed in the Senate.
Under the government’s Stronger Super plan, superannuation member fees will be slashed by up to 40 per cent with a simple default product MySuper set to be available from July 2013.
As well, lost and inactive accounts will be easier to consolidate.
Opposition superannuation spokesman Mathias Cormann on Tuesday said the coalition backed the legislation.
“We support anything that makes our superannuation system more efficient, which makes it more transparent and which makes it more competitive,” he told the Senate.
“Unless we have the most efficient, the most transparent and the most competitive superannuation system possible, investment returns for superannuation fund members across Australia will not be maximised.”
Labor Senator Catryna Bilyk said Australia now had a $1.4 trillion superannuation pool.
She said the new reforms followed a comprehensive review and were projected to add an additional $60 billion to national retirement savings by 2035.
“That’s roughly $40,000 more superannuation for a worker aged 30 on full-time average wages when they retire at 65,” she told the chamber.
“This money will add to the retirement savings of Australian workers and over time will flow into the pockets of Australian retirees.”
The Senate passed the Superannuation Legislation Amendment (Stronger Super) Bill 2012 and the Superannuation Supervisory Levy Imposition Amendment Bill 2012 without amendment.