Industry Super Australia (ISA) has attacked the federal Government’s superannuation reforms, accusing the Government of basing their proposals on ideology rather than evidence.
ISA said that the Government’s bills before the Senate failed to address any of the substantive issues facing the superannuation industry. They do not believe, for example, that the legislation fixes problems with unpaid superannuation or undisclosed investment fees and costs.
The organisation accused the Government of failing to provide any evidence of how the proposed reforms will actually benefit member returns, as it said that there was none.
Instead, they said that “the Government has resorted to dog-whistling about the role of unions on trustee boards.” This follows increased focused by the Government on director fees paid to union trustees.
ISA also questioned why the reforms target industry super funds, as it asserted that they were the best performing part of the sector and do not have the history of misconduct of bank and retail funds.
In the last two years, ANZ, National Australia Bank, Commonwealth Bank, Westpac, Macquarie Bank and AMP have collectively paid over $545 million in compensation and refunds following admitted or alleged misconduct, according to ISA. Industry super funds, in contrast, have not paid any.
ISA called on the Government to withdraw its current legislative proposals, and instead sit down with the superannuation industry to find another solution to improving member outcomes.
Minister for Revenue and Financial Services, Kelly O’Dwyer, has previously denied that the Government’s super reforms are targeted towards unions and industry super funds.