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Coalition to introduce bill banning Cbus from HAFF
The Coalition says it will introduce a bill today to prohibit Cbus from any involvement in the Housing Australia Future Fund.
In a statement on Wednesday, Liberal senator and shadow assistant minister for home ownership Andrew Bragg renewed calls for Cbus to step away from the Housing Australia Future Fund (HAFF) initiative.
Bragg had previously raised concerns about the $94 billion fund’s allegedly close ties to the Construction, Forestry and Maritime Employees Union (CFMEU), which the government intends to shortly place into administration in response to allegations of criminal links.
While in recent weeks the focus has predominantly been on CFMEU and the passage of a bill that would allow the government to seize control of the troubled union, Bragg on Wednesday turned the spotlight back on Cbus with a list of serious allegations.
Namely, the senator alleged that alongside Labor, the CFMEU and Cbus “are locking young people out of the Australian Dream”.
“As it stands, Cbus could be a participant and beneficiary of the HAFF. Cbus is the only super fund to have publicly committed funding to the HAFF,” he said.
“The irony of Labor seeking help from the CFMEU/Cbus cartel to fix the housing crisis that has corrupted the construction industry, is not lost on anyone.
“Three of the 14 directors of Cbus Super are CFMEU officials. Labor and Cbus have failed to recognise any issue with CFMEU representatives sitting on the board of a $94 billion fund despite the government seeking to put the CFMEU into administration.”
To combat this alleged behaviour, Bragg announced that the Coalition will introduce a new bill on Wednesday to ban Cbus from involvement in the HAFF.
“The bill prohibits the HAFF from making any payments to Cbus or housing related entities financed by Cbus. The prohibition will operate while the CFMEU is under administration,” Bragg said.
“The Coalition reaffirms our strong opposition to Labor’s HAFF. However, we believe taxpayer funds should not be exposed to criminal elements.”
Super Review has reached out to Cbus for comment; however, we did not receive a response by the time of publication.
APRA expresses concern
Last week, citing recent public allegations of serious misconduct within the CFMEU, APRA said it “is concerned about the potential impact on trustees”.
In a statement, the watchdog announced additional licence conditions on United Super, the trustee of Cbus, and highlighted the presence of CFMEU officials on the Cbus board.
Following APRA’s announcement, Cbus Super’s CEO Kristian Fok said in a statement that the fund supports APRA’s decision to oblige the fund to undertake an independent review of its board governance and expenditure arrangements.
“This independent review will build on work that Cbus has previously commenced,” Fok said.
“Cbus continues to work constructively with the regulator and will fully co-operate with the independent reviewer.
“We note the allegations of criminal activity in the building and construction sector, and we condemn such activity. We support efforts by governments, regulators, and union organisations to eradicate such criminal behaviour.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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