20 March 2017
Media Release - #2017018, 2017

Another union scare campaign wasting members’ super savings

The latest ISA advertising campaign is just another example of union-backed industry funds using members’ superannuation savings to bankroll political activism, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said today.

“This campaign is jumping at shadows. There is currently no government legislation designed to change the default superannuation model before the Parliament, so the whole basis of the campaign is bizarre,” Minister O’Dwyer said.

“But the main problem is, this is not how members’ superannuation savings should be being spent.

“It is beholden on industry super funds, which bankroll ISA using members’ retirement savings, to disclose to their members how much they have contributed to this latest round of self-indulgent scare campaigning and lobbying.”

Australian Electoral Commission disclosures published earlier this year have previously revealed at least $4.8 million in payments by industry funds made to unions affiliated with the ALP in 2015-16.

Minister O’Dwyer said that if the campaign was designed to pre-empt a Productivity Commission Report, it was another example of trying to shoot down an independent government body.

The Turnbull Government is expecting the independent Productivity Commission to produce its draft report on alternative models for a formal competitive process for allocating default fund members to products later this month.

Once the PC’s draft report is released the Commission will seek further information and feedback from all interested stakeholders, including the ISA and industry funds, before the report is made final.

“The Turnbull Government’s overriding policy objective for superannuation is to have the best policy settings for members,” Minister O’Dwyer said.