Since its formation in 1927, the ACTU has been the peak trade union body in Australia. There is no other national confederation representing unions and their members. The ACTU consists of affiliated unions and State and regional trades and labour councils. There are currently 43 ACTU affiliates. They have approximately 2 million members who are engaged across a broad spectrum of industries and occupations in the public and private sector.
The Morrison Government’s Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019 is a flawed piece of legislation which would take a sledgehammer to the insurance of workers under the age of 25 and workers with superannuation account balances below $6,000.
This Bill is a carbon-copy of the provisions of the 2018 Protecting Your Superannuation Package which the Government failed to pass through the Senate. These measures were not supported by the majority of the Senate Crossbench because they are hugely disruptive and problematic.
The Putting Members’ Interests First bill would:
- Remove the ability for superannuation funds to provide default insurance to members under the age of 25;
- Remove the ability for superannuation funds to provide default insurance to members with account balances below $6,000; and,
- Have provisions which commence before the reporting date of this committee.
The ACTU believes that this bill will cause damage to workers under 25 and with low account balances who need insurance and undermine group insurance in Australia.
The concerns outlined in this submission must be addressed or the Bill should be opposed and the regulator should perform its duties in this area.