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NSW Govt keeps options open on Pillar
While this week’s NSW Budget did not specifically include Pillar Administration in its list of potential asset sales, the Budget documents have made clear that the future of the Government-owned business is still under active review.
The superannuation administrator has been placed on the block for sale by successive Governments, but the latest Budget papers indicate the current Government is taking a more pragmatic approach.
However at the core of that approach is the reality confronting the Government that Pillar is not expected to be a significant contributor to the Government’s coffers over the foreseeable future.
The Budget papers state, “Pillar is one of Australia’s leading providers of superannuation administration services. It manages superannuation accounts for around 1.2 million members with assets of $92 billion.”
It notes that Pillar is operating in a highly cost competitive industry, but that in the face of significant technology investment demands, [Pillar] is not expected to pay dividends after 2014-15 across the forward estimates period”.
“The Government continues to examine options for its future operations,” the Budget papers said.
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Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
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