The Federal Government has sent its strongest signal yet that it intends removing the industrial relations judiciary from process of selecting default funds.
The Assistant Treasurer, Josh Frydenberg made the Government’s position clear on the final day of last week’s Financial Services Council annual conference when he said that presence of the Fair Work Commission in the selection as “poorly conceived” and canvassed an alternative arrangement.
In doing so, he signalled that the Government would be looking to limit the degree to which unions could flex their industrial muscle on superannuation fund selection issues.
“In considering what, if anything should be put in its place, the Government will first and foremost seek to make sure that all MySuper products are of the highest quality — not just those which are offered under Awards,” he said.
“We will also ensure that the wider regulatory framework is robust and appropriate to support moving to an open and competitive market,” Frydenberg said.
“This will include carefully examining whether existing protections against funds or related parties offering inducements or inappropriately influencing an employer’s choice of fund through the threat of industrial disputation are sufficient.”
The minister said that, ultimately, his objective would be to put in place a framework that would generate the strongest possible competitive forces for the benefit of every superannuation fund member.
“Given the significance of reform in this area, I will continue to consult with a wide range of stakeholders, APRA and other government agencies to ensure this outcome is achieved,” he said.
