Budget cuts modern awards funding
The Federal Government has used the Budget to end one of the elements sitting at the heart of the current Fair Work Commission (FWC) review of default funds.
The Budget papers announced that the Government had decided to end the so-called Award Modernisation Process — something which was integral to the processes around default funds under modern awards.
In doing so, the Government said it would achieve savings of $2 million in 2013‑14 by withdrawing the related industry grants announced by the former Labor government in its 2013-14 Budget.
"The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities," the Budget papers said.
The Budget decision comes at a time when the Financial Services Council (FSC) is locked in dispute with the FWC over the processes around the constitution of its expert superannuation panel.
The Government has also signaled its desire to change the default fund processes but has not yet moved to legislate on the issue.
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