The Government has stepped up their attacks on industry super funds who are run only to profit members and supported by both Unions and employer groups.
On September 14th 2017 the Federal Government introduced a range of bills relating to superannuation including changes to super fund governance, which would change the nature of the industry funds’ representative model. The equal representative model of employer and member representatives on boards has been a proven success, delivering strong returns to members. These proposed legislative changes seek to dismantle this successful model. Industry SuperFunds oppose this change.
Other changes include legislation to close a legal loophole that allows employers to shortchange employees who make extra salary sacrifice super contributions. Closing this loophole is a welcome step that shows progress is being made to tackle widespread Super Guarantee non-compliance, but a more comprehensive approach is necessary given the salary sacrifice changes will only help 16 % of those affected by unpaid superannuation.