The ACTU has denounced calls to ban worker representatives from serving on superannuation boards, following the release of a new report from a Senate inquiry into Australia’s retirement system.
Chaired by Liberal Senator Andrew Bragg, the Inquiry’s report recommends legislation to abolish the equal representation model, which forms the basis of profit-to-member funds, permitting both employer and worker representatives to nominate candidates in equal numbers to serve as trustee board directors.
Most Australians have chosen superannuation funds with this model, which focuses on maximising returns for members instead of for shareholders in for-profit super funds.
Profit-to-member funds have outperformed non-representative funds by an average of 1.6 per cent each year over the last 20 years, according to Super Members Council data. For the average Australian, that superior performance puts an extra $190,000 into their retirement savings.
The Coalition’s proposals are another attempt to destroy the super system that Australians value.
Quotes attributable to ACTU Assistant Secretary, Joseph Mitchell:
“The majority of Australians trust their retirement savings to the super funds with worker representatives on their board. Outlawing that option is insulting to the millions who want their super to prioritise their interests over the interests of corporate shareholders.
“This proposal is further evidence that Peter Dutton and the Coalition are unashamedly on the side of the big banks, not workers. When super funds allow workers to have a seat at the table, the evidence is clear, they generate higher returns – worth more than $190,000 in retirement savings. Banning workers’ voices is a direct threat to the financial security of millions of Australians.
“It’s increasingly clear that Peter Dutton and the Coalition are a risk to workers’ wages, and their retirement.
“This is just the latest in Peter Dutton’s destructive record on super. The Coalition froze the legislated increase to the Superannuation Guarantee, voted against making super theft a crime, forced Australians to drain their super to get by during the pandemic, and now they want to force people to drain their super to put a roof over their heads.
“Instead of proposing reforms to close the gendered retirement gap and guarantee a comfortable retirement for every Australian, the Coalition is only interested in dismantling Australia’s world-class retirement system.”
