Industry funds welcome Labor’s super initiatives

Industry superannuation funds have broadly welcomed the Federal Opposition’s proposed changes to the superannuation regime aimed at closing the gap on women’s retirement earnings.

The Federal Opposition has announced it will:

  • Alter the regime to ensure that superannuation is paid on Government Paid Parental Leave and Dad and Partner Pay payments from 1 July 2020;
  • Phase out the $450 per month income SG eligibility threshold from 1 July 2020-1 July 2024;
  • Amend the Sex Discrimination Act 1984 to ensure businesses can make higher super payments for female employees when they wish to;
  • Put in place an annual women’s budget statement for greater transparency and policy impacts understanding;
  • Ensure consideration and reporting by Labor’s Council of Superannuation Custodians on the impact on women of future superannuation changes that it recommends to the government.

Commenting on the Labor Party move, Industry Super Australia (ISA) head of consumer advocacy, Sarah Saunders said the pre-election commitments to narrow the gender super gap, such as paying superannuation on parental leave and scrapping the minimum $450 threshold, were a welcome start.

She noted that the super gap appeared at around age 35 when women had children, and steadily widened to around 40 per cent at retirement.

Saunders said the mix of policies announced by the Federal Opposition acknowledged this reality.

“The system is unforgiving of broken work patterns, and yet women still provide the lion’s share of care,” she said. “Once women return to the workforce, catching up on super contributions and lost compound earnings is very difficult.”

“Policy-makers must show bi-partisanship in ensuring the superannuation system is fit for purpose and fair for everyone, and this is a positive start,” Saunders said. “Adding super to paid parental leave and phasing out the $450 monthly threshold are changes that respond to both existing realities and the evolving workforce”.

She said that removing the threshold would ensure that everyone over age 18 who earned a wage, even across multiple job holdings, could build their retirement savings.

ISA has suggested a future Labor Government could go even further and that other policies worth considering include: a tightly-targeted capital top-up for low balance accounts; and aligning the Low Income Superannuation Tax Offset with scheduled (2021) SG rate and second tax threshold increases.




What a contrast to the liberal party’s insular infighting and bald self interest while ALP getting on with policies that would actually benefit working Australians.

Compare the pair - just that person I was after. While your hear, can you please explain the asset allocation of Host Plus's Balanced option please ie, how is it that property is a defensive asset?

While you're here, can you please explain why that after adjusting for asset allocation, retail funds were SIGNIFICANTLY under performing industry funds whilst charging SIGNIFICANTLY higher fees? Have you read the 2018 productivity commission report??

For the last 10 years I've heard the same arguments about AA of industry funds - how they are not comparable. For a while, I believed this and have been sector agnostic for the most part. But after reading that report, Its clear the retail argument is a losing one, and the RC has exposed why these funds have been under-performing. Guess why? Because the trustees have been dipping into the general pool to spend on the general business, at least thats what IOOF was exposed as doing!

Say what you will about industry funds. At least they don't do that!

Classic gutless deflection of a straight question yet again by a loony left Labor/ISA supporter!!

I would suggest you do your own research... not use reports you cannot see the numbers on or assumptions they use.

For example Do a ChantWest on AMP MYNORTH which has 408 investment options including direct shares and explain how they compare like for like for advisers that use model portfolios, people that have direct shares included part of their portfolio etc etc? AMP MYNorth Super is cheaper to run than Australian Super, Hostplus, Hub24, QSuper, SunSuper the list goes on and on. When you look please just have a look at a straight index fund eg for example this is factual information right now available online anyone can look up MyNorth Index Balanced funds performance last 12mths 12.48% vs Australian Super Balanced fund last 12mths 11.08% not only does Australian Super have a higher asset allocation to more growth assets they still under performed fact.

Another classic example of the industry funds trying to look like they are "comparing page" on Australian super Applechecker done by chantwest which does comparisons which are active fund managers and not straight index managers which have higher costs cheery picked to make Australian Super look better.

More factual numbers are that AMP MYNorth is cheaper on cost and also out performed even on the growth manager MyNorth Index Growth 14.72% last 12mths vs Australian Super High Growth option 12.43%

Industry fund members have been duded into EBA agreements forcing people to have no choice of super funds and now I see lot of noise from industry funds saying they can't compete to keep members because they can't force them to stay anymore insert fox and hen house ad classic mob tactics force and intimidation not excusing some of the retail funds out there which under-perform and a bunch of greedy assholes as well.

This is just one example I used on AMP but and there are heaps of platforms you can do the same numbers and different ways you can invest money Indexed, active investment management, mixture of both, model portfolios, direct shares list goes on and on this is why people need good financial planners to help guide them.

Please note this is not financial advice or a recommendation, this information is general in nature and can be found on each companies websites and PDS's please take your own individual circumstances into place and talk to a financial planner that has choice of Super fund platforms and insurance products not like the industry fund "advisers flogging their own products" I can cheery pick platform managers that have been getting 16% for the last five years etc etc

Sorry what were you saying about comparing the pair?

And who pays for the superannuation contribution, Certainly not the last employer but maybe the government ? What's wrong with that.
Well, why don't whichever government is in power borrow the money. They won't be paying it back, the current generation and the next won't be paying it back, but someone will... sometime in the never never !

Ever since time began, that is, before we got a Left wing Liberal government, the main difference between the Liberal Party and Labour used to be, that the Liberal Party filled up the suit case full of money for a rainy day, but the Labour Party found a way to empty it before that rainy day ever arrived.
Nothing seems to have changed.
@ Compare the pair, that's not policy, it's social engineering from a bunch who's only mission in life is to spend,...spend ... spend with no hope of ever thinking about how, who or when it's paid for.
No doubt you run your budget the same way with forever forgiving banks who don't care when they get their dough back.
And I thought Fantasy Island was just a television show that someone dreamed up.

Well said!

"Amend the Sex Discrimination Act 1984 to ensure businesses can make higher super payments for female employees when they wish to;"

Why? if super is paid on parental leave then what other evidence based requirement would there be to pay women higher SG over time? What a migrants, those with disabilities, non English speaking, indigenous or hey, why not higher LGBTI payments as well???

Agreed, it seems the new lower class unheard minority is the middle aged white male. Our opinions don't matter, we are treated as scum if we dare raise our voices against obvious discrimination or injustice, and any rights we had are now somehow lesser than all the above groups you have mentioned.

Proof of point - in shopping catalogues the fat ladies in underwear are 'body brave', in the men's underwear section, where are the beer bellies? Nothing but rippled six packs to be seen. TV ad's if middle aged women make lewd comments about a good looking scantily dressed male waiter that's ok and run for months; reverse that around and the ad would not last 24 hours...

Totally agree with your points. Time for change in our political spectrum, our left leaning bs political correct society that has been dumbed down to the lowest denominator of ineptitude, which is leading this country down a path to ruin.

The fund raising wing of the union movement has come out in support of the parliamentary wing of the union movement. No surprises there!

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