The Minister for Revenue and Financial Services, Kelly O’Dwyer has used a national newspaper column published on the eve of Senate debate on superannuation fund governance to point to super funds spending millions to protect their own business models.
O’Dwyer used her column published in The Australian to argue that the Government’s agenda should not be disturbing to most superannuation funds but specifically pointed to a Senate inquiry having revealed that $53 million was being spent by funds every year to in lobbying efforts to protect their business models and cashflows.
“Well-performing funds have nothing to fear, but funds that abuse members’ trust will be held to account,” she said of the legislative changes.
“None of these changes should be controversial. They are common sense. They are about protecting members’ money and members’ interests. They are long overdue. However, given what’s at stake for industry insiders, a fierce lobbying campaign is being mounted in an attempt to kill off these sensible reforms,” the minister said
O’Dwyer said a recent Senate committee inquiry had “uncovered an uncomfortable truth — super funds spend almost $53 million of members’ money annually on lobbying efforts to protect their own business models, their guaranteed billion-dollar cashflows, their political influence and economic power”.
“What is most surprising is that almost 60 per cent of the lobbying money is spent on behalf of the not-for-profit sector, including $21.7 million for a group that represents just 16 large industry funds. And that excludes the millions of dollars spent on advertising campaigns,” she said.
O’Dwyer’s column said the progress and accumulation of super during past 25 years was something to be proud of but that with the system set to double to $4 trillion in little more than a decade, “the parliament must not allow this opportunity to strengthen the foundations of the system to pass us by; let’s set it up for the next 25 years”.
