An inquiry into Australasia's superannuation system by the Federal Government has led the head of the inquiry to remark that the industry needs to be simplified. Fee structures need to be easier to understand and fewer and larger industry funds also need to be presented in a simpler manner.

Jeremy Cooper, the review committee's chairman said that it would be preferred if the fee structures are easier to understand and compare. But, he was quick to add that no fee and/or charges for funds should be set by the Federal Government as this could have uncalled for consequences.

"For example, if the Government said "superannuation can only cost a certain percentage per annum" what you'd find is the market would sit just below that percentage and would sort of cease to compete after that point", Cooper said.

The review had revealed that the average funds managed in Australia are "too small" when compared to a global level and need to be restructured and consolidated. The country's average fund size stood firm at about $2.38 Billion.