The Labor Government has come under fire for once again failing to acknowledge its own pre-election policy to bring greater transparency and competition into the default superannuation fund market.
Shadow Minister for Financial Services and Superannuation, Senator Mathias Cormann (pictured), said the recent Budget provided the ideal forum to stimulate change in the default superannuation market by helping to provide Australians with appropriate choice and benefits resulting from increased competition for superannuation in modern awards.
Cormann added that the current process for selecting default superannuation funds under modern awards was anti-competitive, lacked objectivity, was not evidence-based and was not transparent.
“For almost three years we have had a closed shop, anti-competitive arrangement to select default superannuation funds with a significant bias towards union superannuation funds. This may be in the best interest of the union movement but it is not in the public interest,” Cormann said.
Referencing the run up to last year’s election, Cormann pointed to Labor’s acknowledgement of the problem in the default superannuation fund market and commitment to refer the matter to the Productivity Commission to design a new process for selection and an ongoing review of default superannuation funds under modern rewards, a promise it has not upheld.
“Its actions since the election have proved that Labor does not have any commitment to competition, openness and transparency in superannuation. When the matter was debated in the Senate in November 2010, Labor arrogantly voted against its own pre-election policy commitment. Now [Bill] Shorten has again missed the opportunity to use the Budget period to help provide Australians with appropriate choice,” he said.
