Following damning evidence to an inquiry into the effect of the legislation, Labor Senators have recommended against the Government’s Your Future, Your Super bill unless the Government overhauls the absurd proposition that makes Josh Frydenberg Australia’s Superannuation Trustee in Chief.
The inquiry confirms Labor’s fears that Josh Frydenberg’s investment kill switch for super investments represents a sovereign risk and undermines sound market principals.
Expert evidence presented at the inquiry, including from the Institute of Company Directors and the Australian Industry Group, shows these extraordinary powers would create a “sword of Damocles” over every super investment in Australia.
The powers would undermine confidence for large international investors looking to partner with super funds, undermining Australia’s ability to attract capital.
And they would blur the lines of accountability for fund managers and the boards which oversee their investments.
There are further problems with the bill. As the Inquiry’s dissenting report makes clear, the bill’s stapling measures will mean three million Australians could be consigned to a lifetime of payments into underperforming funds.
The legislation’s unrealistic start date of July 1 will create an unreasonable regulatory burden on business owners and the Australian Tax Office, who will have just weeks to update software to comply with the new requirements.
The Government’s 11th hour changes, to remove other major flaws with this legislation, do not go far enough to satisfy Labor’s concerns.
We strongly support the stated intent of the bill to improve performance and put more money in workers pockets.
But we cannot let that be at the expense of millions of other workers who will be worse off.
We will not stand by and watch the Morrison Government taint rational investment decisions with the political whims of the Treasurer of the day.
And we will shield business owners and the Australian Tax Office from the Morrison Government’s unreasonable regulatory demands.
These matters must be fixed if the Bill is to be passed into law.