Gillard government to launch no-frills super scheme

The Gillard government will back plans for a no-frills superannuation scheme named MySuper, it has been revealed.

The Herald Sun reports that the new scheme is expected to be taken up by 80 per cent of the 11 million Australians with super accounts.

It comes after a year-long inquiry found that Australians are paying too much in fees to fund managers and other parties involved in the $1.25 trillion super industry.

Such costs have encouraged Aussies to compare term deposits in search of better returns. According to the Herald Sun, the government’s reforms will make it easier for super account holders to check their fees and switch to a better scheme.

The newspaper noted that under government calculations, even a 0.25 per cent cut in fees will boost the average superannuation account by $20,000.

It is thought the final inquiry report will outline ways to ensure these savings are passed on to workers.

Last week, research by the Sydney Morning Herald showed that Australia’s wealth per capita rose to $46,000 in the March quarter of this year, a strong increase on the $36,200 recorded just 12 months earlier.

This article is brought to you by Mozo – Helping you compare term depositsADNFCR-1761-ID-19864264-ADNFCR