A senior Government senator has questioned whether Industry Super Australia (ISA) was acting consistently with member’s best interests by appearing before the Senate Economics Legislation Committee’s review of the Government’s Budget tax cuts legislation.
The chair of the committee, Victorian Liberal Senator Janet Hume, directly questioned the ISA’s chief economist, Dr Stephen Anthony, about the appropriateness of a superannuation-focused body funded by industry superannuation funds appearing before the committee.
She asked whether, given that the purpose of superannuation funds was to further the interests of members, it was appropriate for Anthony to be spending time addressing the Canberra-based committee by telephone from Melbourne.
“How is using your time in this way in keeping with those objectives?” Hume asked.
Anthony responded that his role and function within ISA could be likened to that of a bank economist – “to be analytical and objective”.
In doing so, the ISA chief economist expressed the ISA’s opposition to the Government’s proposed tax cuts, suggesting that taken in combination the proposed personal and business tax cuts would, by the middle of next decade, remove any possibility of a surplus.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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