ACTU rejects Govt super reforms

ACTU superannuation retirement Scott Connolly

5 January 2021
| By Jassmyn |
image
image
expand image

The Australian Council of Trade Unions (ACTU) has rejected the Government’s superannuation reforms as it believes they will leave workers worse off and erode retirement savings. 

The ACTU said current benchmarking proposals excluded member administration fees that would leave to Government proposals “misleading workers into thinking they are members of a well-performing super fund”.  

“This is an attack based on ideology, rather than the best interests of workers as those in industry funds can expect to retire, on average, with a larger balance at retirement due to better performance and lower fees,” it said. 

“Extraordinarily, the Government’s proposals also seek to grant the relevant minister the authority to deem any expense, investment, or activity, by any fund, at any time, illegal. 

“Funds would be beholden to a single minister’s preference as the minister is not required to give notice nor reason, and these regulations are not able to be challenged in court.” 

On the stapling proposal, ACTU assistant secretary, Scott Connolly, said a super member could be locked into an underperforming for-profit fund that “is funnelling money to shareholders through exorbitant administration fees – and be misled by the Government that they are in a good fund”. 

Connolly said the exposure draft legislation represented an “attack” on working people, their retirement savings, and the “best-performing and best-governed superannuation funds”. 

“The Federal Government’s reforms to superannuation will slash workers hard won retirement savings and should be completed rejected,” he said. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

1 month 3 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 months ago

Interesting. Would be good to know the details of the StrategyOne deal....

2 months ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

2 weeks 2 days ago

Original bidder Bain Capital, which saw its first offer rejected in December, has returned with a revised bid for Insignia Financial....

1 week 2 days ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

1 week ago

TOP PERFORMING FUNDS