By Jason Spits
After eight years of political handballing, choice of fund legislation was passed by the Senate last week to become Australian law, with the Federal Government set to spend $16 million on an information campaign to sell the idea to the public.
The laws were passed after a deal was struck with the Australian Democrats which forced the Government to back down on restrictions on same-sex couples inheriting each other’s super and forcing funds to disclose fees.
Other changes proposed by the Opposition, including all superannuation funds to offer an ethical investment option, exemptions for small business and entry and exit fees set by regulation all failed to be adopted by the Government or Democrats.
The new laws will take effect from July next year and will apply to about five million workers contributing to superannuation funds, many of whom have been using an employer nominated fund.
In the run up until the legislation comes into effect, the Government says it will embark on a public information campaign and closely watch the disclosure of fees and charges for five years, as well as ensuring default funds offer some form of life insurance.
The Opposition superannuation spokesman Nick Sherry said choice was a dangerous option without sufficient information or financial literacy, but Assistant Treasurer Helen Coonan says the Labor Party regards the public as “too uninformed, too stupid or too inexperienced to be trusted to make decisions for themselves”.
