Labor rejects governance and choice changes
The Shadow Minister for Financial Services and Superannuation has used a speech at an annual reception to reiterate the Labor Party's opposition to governance changes on superannuation boards, and default fund choice for employers.
Dr Jim Chalmers told the Value Alliance Annual Reception last night that Assistant Treasurer, Kelly O'Dwyer, was still pursuing her campaign against representative superannuation boards, despite the Senate rejecting her plans last year.
Chalmers also used the speech to reject the Federal Government's attempts to drive more competition in the default fund market, saying that he opposed the Government's stance on default fund choice for employers.
"On choice, we're open to considering ways to give more workers super fund options, but reject the Government's attempts to conflate this issue with the vexed question of default fund choice for employers and the removal of important safeguards for workers," Chalmers said.
The stance came even as the Federal Government used the terms of reference of a Productivity Commission inquiry into the super system to reiterate that the default funds regime would be under significant scrutiny and change based on competition grounds.
Chalmers also attacked the Government contemplating a delay or a freeze on scheduled increases to the super guarantee, and also said Labor would oppose plans to abolish the Low Income Superannuation Contribution, which he said would see 3.6 million Australians lose up to $500 in super a year from 2017.
"This will disproportionately affect women, who are already let down by the current super system, and Labor will be looking for ways to help close the gender gap, including through my colleague Senator Jenny MacAllister‘s Senate Committee Inquiry," Chalmers said.
Chalmers also said his party would continue to focus on the Government's plans to make it easier for employers to evade their super obligations, resulting in 690,000 Australians missing out on around $2.6 billion per annum.
AUTHOR
Malavika Santhebennur
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