O’Dwyer’s direct hit on ISA

5 April 2018

Industry Super Australia (ISA) has been directly targeted by the Minister for Revenue and Financial Services, Kelly O’Dwyer in a scathing Sydney speech in which she has questioned the motivations of some elements of the superannuation industry.

O’Dwyer obliquely but obviously referenced ISA at the same time as claiming that members of superannuation funds “have to stand by and watch as their retirement savings are spent on straight out political advertising”.

Her address to the Sydney forum comes just weeks before the Royal Commission into Misconduct in Banking, Superannuation and Financial Services begins dealing with superannuation funds, particularly around issues involving possible breaches of the sole purpose test.

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In doing so, O’Dwyer also suggested a measure of self-interest for superannuation funds which continued to press for increasing the superannuation guarantee from the current 9.5 per cent to 12 per cent – something which she said would mean around $10 billion a year more flowing into the industry in 2025-26.

“Which, of course, means a bonus of hundreds of millions of dollars in fees each year for the industry and ever-increasing salaries for industry professionals,” she said. “And that is before you take into account all that additional money sloshing around for other cultural practices that have built up along the way.”

The minister then clearly referenced industry funds and the ISA by citing the examples of:

  • members of superannuation funds having to stand by and watch as their retirement savings are spent on straight out political advertising;
  • dubious sponsorships of union congresses;
  • superannuation liaison officers who are in fact union officials being paid out of super funds; and
  • a lobbying outfit whose principal achievement last year was to stand in the way of the regulator, APRA, getting important new powers to protect members’ money.

In doing so, O’Dwyer argued for more flexible approach based on the fact that the superannuation guarantee wasn’t the only way to increase retirement savings.

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Hmm, watch my post on LinkedIn later today or tonight about this...

Whilst Chloe Shorten is obviously a well credentialed and experienced person in her own right, based on the accusations of dodgy Union and electoral donations saga's of her husband Bill over the last few years and the incredible volume of members monies that continue to be poured into the Unions or their "associated entities" by Industry Super Funds , is it not somewhat an inappropriate appointment that Chloe Shorten is made a Director of Industry Fund Services in August , 2017 ?
Is this appointment representative of the stacking of Industry Fund organisations with people who have unrivaled association with the Labor Party or Unions for political purpose ?
At the end of the day, does this appointment give Chloe Shorten access to influence Labor Party policy for the benefit
of the Industry Super Funds in general and the ISA. ?

Enough with the ideological claptrap. Lay them all out on the table side by side. Performance, fees, the lot. What is the end result for X amount of contributions over Y number of years? Put the top industry funds side by side with the top retail funds. I don't care if they're sponsoring the Communist party if they are getting me good returns.

But Owen what investment option are they going to be comparing from the so called Retail Fund, of which most invest in Wholesale Managed Funds, will it be the default Balanced option that has a 60% growth allocation up against the industry funds' default Balanced option that has a 80% growth allocation? will they ask me to provide details of my portfolio's to be compared against Industry Fund returns? how are they going to make a meaningful comparison?

Am I wrong that despite this rhetoric, we are yetto see any ISA fronting the Royal Commission??? What thehell is wrong with them if they keep avoid taking that sector to task - corrupt themselves???????????

Well, you will never see the ABC giving an abrasive expose of the Industry Super Funds in a million years.
An organisation that is funded by every tax payer in the country is so obviously protective it's sickening.
Today's ABC Radio program Roundtable hosted by an "unbiased " Hugh Riminton, provided an opportunity for him to subliminally put his own " emphasis " on his quite aggressive questioning and comments and effectively promoted industry superannuation funds hand over fist on multiple occasions during the program.
He referred to people like Alan Kohler for goodness sake, who is paid by the ABC....that would be balanced !.
It's a wonder he also didn't refer to Alan's bestie, "esteemed" financial expert, one James Kirby whose comments in the Weekend Australian on April 28-28 regarding insurance were effectively veiled and negligent general advice in print. He is also a regular guest of the ABC.
So, I can tell that even if the RC were to call up the Industry Super Funds and unravel the very complex web you wouldn't hear boo from the ABC until they were forced to report something and then it would be significantly downplayed.
It's YOUR ABC ( Always Biased Commentary).

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