Holding the balance of power in the Senate was enough for Australian Democrats superannuation spokesman Senator John Cherry to secure his name in the superannuation hall of fame in one of the most fundamental (if not long burning) political deals struck this year in Canberra.
In June, Cherry ended almost eight years of political handballing when he reached a compromise with the Government to push through the Superannuation Legislation Amendment (Choice of Superannuation Funds) Act 2004.
“The Democrats believe that letting workers choose their own superannuation funds will improve their ‘ownership’ of super, increase competitive pressure on funds and boost ethical investment,” Cherry said at the time.
He said the deal could have been sealed earlier had the Government backed down on restrictions on same-sex couples inheriting each other’s super, as well as forcing funds to disclose fees.
“The Democrats got very close to agreement on choice with Senator Kemp back in 2001, but the show-stoppers were financial fees disclosure and the failure to provide choice on death benefits, particularly for same-sex couples,” Cherry said.
“The Government finally accepted the wording I put to them as a ‘compromise’ last July [2003], to recognise interdependent relationships, finally ending the discrimination against same-sex couples in practical terms.”
The new choice regime will begin on July 1, 2005, forcing some five million workers to start making active decisions about their super.
