Today’s release of APRA’s first assessment of superannuation funds investment performance confirms the strength of Australia’s world class system.  
  
A healthy 93 per cent of Australians are in funds which passed the test, meaning their super investments are bringing strong returns for their retirement.  
  
The bad news is around 1 million accounts are in underperforming funds that have failed the test.   
  
These Australians deserve better.  
  
These account holders will now receive a letter giving them that news and recommending they switch funds.  
  
Labor is concerned this could create a run on funds and a disorderly transition of those accounts into better performing funds, as the Productivity Commission warned in 2018.  
  
The Morrison Government has failed to heed that warning and has no plan to provide certainty and security for workers with underperforming accounts.  
  
Furthermore, there are millions more accounts in underperforming “choice” funds that APRA has not been asked to assess.  
  
The Morrison Government inexplicably excluded them despite the Productivity Commission findings  that choice funds produced some of the most egregious underperformance in the industry.  
  
The PC found a “tail” of 4 million accounts and $275bn of funds under management in high-fee, low return choice products.  
  
Labor supports the focus on improving the performance of all super funds and we reiterate our call for the Morrison Government to extend assessments to every APRA-regulated fund, including choice products.  
  
It is disappointing these warnings have been ignored by a Government that’s always focussed on the announcement and never the follow through.