The Your Future, Your Super Bill has passed the lower house, after the government dumped its controversial veto powers, which would have allowed the Treasurer to veto certain investment decision made by super funds.
The bill’s redrafting only took place after a widespread campaign to disallow the government to ban certain investments if it deemed them not in members’ best interests.
But Australian Institute of Superannuation Trustees (AIST) has decided to persist in its campaign against other elements of the legislation it deems “deeply flawed”.
The AIST is now exerting pressure on members of the Senate to protect members’ savings against these “flawed” measures.
In a statement issued late last week, AIST termed the Your Future, Your Super legislation a threat to the retirement outcomes of millions of Aussies workers. AIST noted that it remains “deeply concerned” that vulnerable Australians will be stapled to underperforming and untested super products if the legislation gets the green light.
“The amendments to the bill don’t change the fact that this piece of legislation contains fatal flaws that will result in significant unintended member detriment,” AIST CEO Eva Scheerlinck said.
“This bill excludes more than one-third of super savings from scrutiny and disclosure, and does not prevent members from being stapled to funds that have not been tested or have failed the test.”
Ms Scheerlinck stressed that while AIST does support the intent of the bill to improve super fund performance and reduce multiple accounts, certain issues need to be ironed out in the Senate to ensure members are not left worse off.
