28 April 2021

Labor welcomes the Morrison Government's about-face on critical elements of its controversial ‘Your Future, Your Super’ Bill.
In draft regulations, the absurd loophole, which would encourage bad funds to hike administration fees, has been removed. Likewise, the silly proposition that created a disincentive for Australian funds to invest in Australian Infrastructure.
But there is no reward for not doing dumb things, particularly when two really dumb proposals remain on the table.
They continue to pursue the extraordinary proposal known as the ‘investment kill switch’. They also plan to staple Australians to underperforming funds.
Josh Frydenberg cannot be allowed to control Australia’s $3 trillion superannuation savings pool by cancelling investments he doesn’t like.
Subjugating rational investment decisions to the Treasurer’s political whims represents a sovereign risk and sets a dangerous precent for the business community.
The Morrison Government should also understand this isn’t just a power for Josh Frydenberg, but for any future Treasurer.
That creates a scenario where superannuation investments become a political bargaining chip in future hung Parliaments.
It’s not hard to imagine independents and minor parties using it to extract concessions from future governments of all stripes.
For seven months, Labor’s warned the Government its super reforms would leave workers worse off in retirement and damage confidence in the economy.
It’s time they listened and got it right.