With almost $2.7 trillion in assets, Australia’s superannuation industry continues to grow and deliver strong outcomes for its members. However, 2018 was a watershed year for superannuation. Significant market shifts are occurring within sections of the industry that are likely to reshape the structure of the market in the coming years.
The 2019 KPMG Super Insights Report & Dashboard evaluates the current state of the super industry and considers the challenges it will face in the coming years.
The KPMG Super Insights Dashboard presents leading analytics applied to 10 years of APRA and ATO-published-statistics. The interactive dashboard can be filtered to view industry and fund metrics for a particular year or segment of the market and to view metrics for an individual fund in comparison to a peer group.
Key focus areas for funds
In our report we discuss a number of areas which KPMG believe will be key focuses of attention this year for funds.
- Risk and regulation – Ensuring a holistic, integrated approach to managing risk, complemented by a strengthening of core governance frameworks.
- Legal and regulatory implications from commission recommendations – Trustees and management will face greater regulatory intrusion and enforcement.
- APRA inquiry into CBA and BEAR – As funds focus on culture and accountability self-assessments, they must now also prepare for greater individual executive accountability.
- Member outcomes and legislative changes – As funds prepare for the introduction of the member outcomes assessment in 2020, legislative changes impacting accounts with low balances and insurance in superannuation will impact funds in 2019.
- Financial advice – Royal Commission and Productivity Commission recommendations have the potential to significantly impact the provision and cost of advice.
- Mergers and industry consolidation – There will likely be a rise in merger announcements over the next year.
- Tax - Increased scrutiny from the ATO in the form of streamlined assurance reviews come as many funds update systems and processes due to legislative changes.
- Increased investment in technology and data – to support strategies and differentiation comes at a time that mandatory technology spending demands increase.
- Trust and social licence – A focus on reputation and engagement while communicating values and purpose to members and stakeholders is vital.
- Member experience and engagement – Member retention and acquisition is being achieved by funds that deliver exceptional personalised services.
- Responsible investment – a continued focus for funds as members and stakeholders engage with funds in relation to their investments.
Download the full report (PDF 744KB)
Explore the interactive dashboard
Read the media release