Retirement
Hume stands firm on super crackdown
Senator Jane Hume has said that super funds “must deliver more” for the Australian people and gave no ground on the increasingly controversial issue of benchmarking.
Hume stands firm on super crackdown
Senator Jane Hume has said that super funds “must deliver more” for the Australian people and gave no ground on the increasingly controversial issue of benchmarking.
Speaking to the Australian Shareholders Association (ASA), Ms Hume warned that the Your Future, Your Super reforms would “put beyond doubt” that trustees must act in the best financial interests of members.
“I am not saying that direct investments in airports, social housing or energy generation are inappropriate – far from it. We also know that there is an illiquidity premium that comes with large-scale direct infrastructure investment, which can add great value to a portfolio,” Ms Hume said.
“But to invest in these things for any reason other than the best financial interests of members – even if it’s to improve the economy or create jobs – is a breach of obligations to members who have entrusted trustees to have one overarching objective – their best financial interests.”
The reforms will also require funds to disclose executive remuneration, political donations, marketing spend and other expenses that have previously drawn the ire of government and regulators – including sporting sponsorships and external entertainments such as Hostplus’ now infamous Australian Open cash splash.
“The Productivity Commission’s landmark report on the superannuation system lamented this lack of transparency, speaking at length of the ‘yawning gaps’ in superannuation data,” Ms Hume said.
“In a compulsory system, this is not good enough. A system which automatically receives almost one in every 10 dollars earned by Australians must be held to highest standards of transparency. People should be able to see exactly where that money is being invested and where every cent of their compulsory superannuation savings are being spent.”
Ms Hume also stood firm on the issue of benchmarking, which a number of fund executives have warned could create unintended consequences for members, noting that 21 out of 77 MySuper products had already underperformed their own benchmark by more than 0.5 percentage points.
“Being in a poorly performing fund can have a significant impact on how much super Australians have when they retire,” Ms Hume said.
“That is why the Morrison government wants – and expects – the superannuation system to deliver more for Australians.”
RELATED ARTICLES
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
