How AustralianSuper paid nearly $400,000 to an employer group
Amid claims by some Government backbenchers and financial planners that industry funds channel money to trade unions, evidence to a Parliamentary Committee has confirmed that industry funds also channel money to employer groups.
The Australian Industry Group (Ai) has confirmed to the Senate Economics Legislation Committee that it was the recipient of nearly $400,000 last financial year as a result of its staff being involved in the activities of AustralianSuper.
Answering questions on notice from a recent hearing of the Committee, Ai made clear that while individual members of its staff were not remunerated by AustralianSuper, Ai itself was a financial beneficiary from the arrangement.
“Some Ai Group employees provide services to AustralianSuper through their membership of AustralianSuper’s board, its Committees and Advisory Boards,” Ai said.
“As is the case for remuneration for external roles in general, under Ai Group’s employment arrangements the remuneration relating to these services is paid to Ai Group in recognition of the fact that Ai Group staff are not available to work for Ai Group while they are providing services as part of their external roles,” it said.
“Similarly, some Ai Group employees serve on the Shareholder Advisory Board of IFM Investors. These are remunerated positions and, under Ai Group’s employment arrangements, the remuneration relating to these positions is paid to Ai Group itself.”
It said that in 2019/20, the total received in relation to the arrangements was $386,110.96.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.