The Federal Government has labelled the latest advertising campaign against banks entering the superannuation arena by Industry Super Australia (ISA) as another union scare campaign.
Minister for Revenue and Financial Services, Kelly O’Dwyer, said the campaign was another example of union-backed industry funds using members’ super savings to “bankroll political activism”.
“This campaign is jumping at shadows. There is currently no government legislation designed to change the default superannuation model before the Parliament, so the whole basis of the campaign is bizarre,” O’Dwyer said.
“It is beholden on industry super funds, which bankroll ISA using members’ retirement savings, to disclose to their members how much they have contributed to this latest round of self-indulgent scare campaigning and lobbying.”
O’Dwyer said if the campaign’s intention was to pre-empt a Productivity Commission (PC) report, it would be another example of attempting to “shoot down” an independent government body.
She said the PC would release its draft report on alternative models for a formal competitive process for allocating default fund members to products later this month, at which point all stakeholders, including the ISA and industry funds could provide feedback before the report was made final.