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Phoney portability Mark II.



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SENATOR NICK SHERRY

SHADOW MINISTER FOR RETIREMENT INCOMES AND SAVINGS

MEDIA RELEASE

10 October 2003

Phoney portability Mark II

Still weak and wimpy, is how I describe the second so-called portability mark II regulations gazetted today by the Assistant Treasurer Senator Coonan.

This size of the problem is well known: 25 million accounts for 9 million members and unclaimed super monies of $6.8 billion.

Most Australians can already consolidate or roll together their accounts. They fail to do so because they don’t know they can, can’t find them, and need to fill in forms - too much red tape.

The problem will not be solved unless the Liberal Government considers the clear, simple measures suggested by Labor in our policy options paper released in August 2002, and the Senate Super Committee Report on Portability:

• Ban new entry and exit fees, which act as barriers to movement - sometimes

these are in the hundreds and thousands of dollars

• Clear, simple and enforceable disclosure of all fees, charges and commissions,

• Automatic consolidation, or rolling together of accounts.

The mark II regulations represent a significant back down by the Minister Senator Coonan, following the unanimous criticism of the Liberal Government’s original regulations, which were disallowed on the 19th September 2003.

They are still unsafe for fund members and fail to provide a real solution.

For more information or comment please contact: Senator Nick Sherry on 0418 482 807, or Rosie Irvine 02 6277 3127 or 0414 692 283