ISA accuses Government of ideological vendetta
Industry Super Australia (ISA) has attacked the federal Government’s superannuation reforms, accusing the Government of basing their proposals on ideology rather than evidence.
ISA said that the Government’s bills before the Senate failed to address any of the substantive issues facing the superannuation industry. They do not believe, for example, that the legislation fixes problems with unpaid superannuation or undisclosed investment fees and costs.
The organisation accused the Government of failing to provide any evidence of how the proposed reforms will actually benefit member returns, as it said that there was none.
Instead, they said that “the Government has resorted to dog-whistling about the role of unions on trustee boards.” This follows increased focused by the Government on director fees paid to union trustees.
ISA also questioned why the reforms target industry super funds, as it asserted that they were the best performing part of the sector and do not have the history of misconduct of bank and retail funds.
In the last two years, ANZ, National Australia Bank, Commonwealth Bank, Westpac, Macquarie Bank and AMP have collectively paid over $545 million in compensation and refunds following admitted or alleged misconduct, according to ISA. Industry super funds, in contrast, have not paid any.
ISA called on the Government to withdraw its current legislative proposals, and instead sit down with the superannuation industry to find another solution to improving member outcomes.
Minister for Revenue and Financial Services, Kelly O’Dwyer, has previously denied that the Government’s super reforms are targeted towards unions and industry super funds.
AUTHOR
Hannah Wootton
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
