Super changes upset funds
Resistance is growing against the Federal Government’s planned superannuation changes.
Proposed reforms have been tabled, seeking to give the Morrison government powers to prohibit funds from making certain payments and investments, while also establishing performance benchmarking for funds.
The explanatory notes for the bill, which is currently before the Senate economic legislation committee, said it includes a deliberately broad power to stop payments.
“This ensures that regulations can be made to prohibit certain payments and investments where they are considered to be unsuitable expenditure by trustees in any circumstance,” the materials say.
Labor and super funds say these powers could be used to silence criticism, including advertising campaigns opposing government policy.
Also, there are no details yet on the performance benchmarking methodology to be used in the regulations. The super sector is concerned it will not have enough time to consider them before changes come into effect on July 1.
The three major super lobbies – Industry Super Australia, the Australian Institute of Superannuation Trustees and the Association of Superannuation Funds of Australia – demand transparency.
“It is currently not possible to assess the full effect of the amendments proposed in the YFYS [Your Future, Your Super] bill, including the impact on members’ financial interests,” they said in a letter obtained by The Australian Financial Review.
“Given details of the full impact of the YFYS bill are not yet clear we are concerned there is now insufficient time for considered debate of the bill.”
There are just three Senate sitting weeks left before the end of the financial year.
“We seek your reassurance while the committee will not have time to carefully consider the YFYS bill regulations as part of its inquiry, the Parliament and relevant stakeholders will be provided with adequate time to consider all the regulations,” the letter said.
Crossbench senators Rex Patrick and Jacqui Lambie have both signalled concerns about the bill. Senator Patrick says he will move amendments.