Govt accused of reneging on RC over default super

The Federal Government is pandering to the major banks by trying to change default superannuation arrangements, according to major union, the Electrical Trades Union (ETU).

The union has filed one of the earliest submissions to the Senate Economics Legislation Committee inquiry into the Government legislation underpinning the default superannuation changes – the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019.

In doing so, the ETU accused the Government of acting contrary to the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services by backing the banks over industry funds.

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“It is astonishing that barely months after the damning findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry were published, the Morrison Government has returned to its old habit of protecting banks and attacking industry superannuation funds,” the submission said.

“As continued revelations of finance sector misconduct appear almost daily in the media such as the recent case of Westpac being found to have 23 potential criminal breaches of money laundering laws – found to have facilitated the financing of child exploitation – the government is persisting in giving the banks exactly what they want,” it said.

“Superannuation is an initiative of working people and where they choose to negotiate a default fund with their employer, in their own best interests, what right does the Government have to refuse or undermine that choice,” the submission said.

The ETU submission said that each time an industrial instrument was renegotiated “the workforce has ample opportunity to review the fund and determine any changes they might want”.

“Once again, a Government that pretends to believe in free markets demonstrates its beliefs only apply when workers choose to buy products off the multi-national companies from whom the government receives political donations,” it said.




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This bill is stopping all super funds.. retail or industry funds from stopping clients having choice of super

yet Industry Funds working through Electrical Trades Union (ETU) are arguing a bill that stops members from having choice of super and forcing them to stay in their own funds unreal

the two main points of this bill is as follows.

Some workers cannot choose the superannuation fund into
which their compulsory employer superannuation is paid.
This puts them out-of-step with the majority of workers and
prevents them making key decisions around their retirement
savings, can result in the payment of unnecessary fees and
insurance premiums, and can reduce competition between
superannuation funds.
• Choice of fund for compulsory contributions can be restricted
by some employers under Commonwealth legislation.
Without Government action individuals under certain
collective agreements will continue to face restricted choice
of fund.

You say "Some workers cannot choose the superannuation fund into which their compulsory employer superannuation is paid." I thought that restriction had been removed. Can you indicate where this is still happening please?

All Clients in Rest do not have choice of funds as per their EBA agreement even right now in 2020, I have clients that wish to move but they are refused choice of super. I believe CBus and TWU have been called out on this as well..
https://www.abc.net.au/news/2014-06-23/wa-truck-driver-forced-to-join-tw...

Has been an ongoing issues for example for years eg QSuper only just gave members choice in 2017 but choice of super laws happened in 2005 https://qsuper.qld.gov.au/employers/payments-and-employment-changes/quee...

The bill is to stop both Retail and industry funds from stopping customers from having choice of super and their own retirement money and I don't think its a good argument to be telling people they cannot pick their own super fund.

An a example of retail, Industry funds and "for Member Fund all which have been stopping clients have choice of super...

The ABC story is 2014.
ATO advises:
You’re not eligible to choose the super fund you want your super guarantee contributions paid into if:
your super is paid under a state award or industrial agreement
your super is paid under certain workplace agreements, including some Australian workplace agreements (AWA)
you’re a federal or state public sector employee, excluded from super choice by law or regulations
you’re in a particular type of defined benefit fund or have already reached a certain level of benefit in that super fund.

Otherwise an employee can select a super scheme of their choice.

ATO advises:
You’re not eligible to choose the super fund you want your super guarantee contributions paid into if:
your super is paid under a state award or industrial agreement not sure how your conclusion was = an employee can select a super scheme of their choice.

Yes The ABC story is 2014. is still currently happening in 2019-2020
One outrageous example is a Toll Holdings agreement which bans workers from choosing their own fund!
This deal was examined by the Trade Union Royal Commission. It emerged Toll truck driver Paul Bracegirdle tried to pick a fund other than TWU Super to boost his savings to provide for his daughter.

Bracegirdle’s request was legally denied and he was told by a union offical to “f**k off, no one cares Paul. Go away.”
Yet Labor has defended the unholy alliance of big business and big unions screwing workers out of personal choices.
https://www.andrewbragg.com/hc/en-us/articles/360033737974-People-must-b...

This bill is stopping all super funds.. retail or industry funds from stopping clients having choice of super

yet Industry Funds working through Electrical Trades Union (ETU) are arguing a bill that stops members from having choice of super and forcing them to stay in their own funds unreal

the two main points of this bill is as follows.

Some workers cannot choose the superannuation fund into
which their compulsory employer superannuation is paid.
This puts them out-of-step with the majority of workers and
prevents them making key decisions around their retirement
savings, can result in the payment of unnecessary fees and
insurance premiums, and can reduce competition between
superannuation funds.
• Choice of fund for compulsory contributions can be restricted
by some employers under Commonwealth legislation.
Without Government action individuals under certain
collective agreements will continue to face restricted choice
of fund.

reply

Thanks for the heads-up. I agree with your penultimate paragraph arguing that workers should be able to choose their superannuation fund.
However I believe Andrew Bragg is worse than a cut snake and I am forced to take the opposite view to anything he states. Not to be trusted.

If Union Super Funds are so amazing, why are they so opposed to the FWA deciding which funds can be offered as default funds? The real reason they are growing rapidly in size is because they are being shielded from real competition by the FWA. The problem with this is that when these funds grow to several Trillion in size, it will become they will become a major threat to the Australian economy - so much so future Govts will be forced to introduce US style anti-trust legislation to keep their mega-powers in check. If you think the head of Westpac being taken out by major shareholder AustralianSuper was unreal, you've seen nothing yet.

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