CANBERRA, AAP – Business and union leaders have joined forces to warn against supporting “seriously flawed” changes to superannuation.
The Australian Council of Trade Unions and Australian Industry Group have written to key crossbench senator Stirling Griff to raise concerns about the Your Super, Your Future bill.
They have also requested an urgent meeting.
The amended legislation passed the lower house late last week and will soon be debated in the Senate.
The government was forced to strip a provision to give the treasurer veto power over investments by super funds after losing the support of several coalition backbenchers.
But ACTU president Michele O’Neil and Ai Group chief executive Innes Willox said removing the veto power alone would not fix the many problems with the bill.
“The legislation the house has now asked you to consider would still mean that more superannuation fund members will be locked into poor performing superannuation products – potentially for life,” the pair wrote.
They also warned the bill would leave many workers in high-risk industries with unsuitable or inadequate insurance coverage.
The bill would “staple” members to a single super account that would move with them between jobs, saving multiple sets of fees and insurance premiums.
It would also introduce an annual performance test that would prevent the worst performing funds from taking on new members.
Superannuation Minister Jane Hume claims the changes are aimed at making the system more efficient.
“Our organisations believe this bill should be rejected and alternative legislation should be developed to address underperformance and multiple accounts,” Ms O’Neil and Mr Willox wrote.