AMP welcomes the Government’s review of the Annual Performance Test for superannuation products and looks forward to participating in the consultation process.
While supportive of the current testing methodology for default superannuation products, we have previously highlighted concerns about the test for choice Trustee Directed Products, which is leading to confusion and sub-optimal outcomes for members.
Rather than apply a ‘one size fits all’ methodology, the test needs to recognise the importance of choice for members and that products are designed with different risk and performance benchmarks to meet the differing needs of members.
Importantly, we will also be recommending the Government address the immediate issue of providing capital gains tax relief for those members who are in products which haven’t met their performance benchmark.