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Industry fund commits to super centre funding
AustralianSuper has committed to partly fund the industry contribution needed to start the Superannuation Consumer Centre, according to Choice chair Jenni Mack.
The Federal Government pledged $10 million last year to develop the centre on the proviso it was matched by industry contributions.
It will act as a dedicated expert consumer voice for superannuation and encompass an advocacy program, and a social media platform to deliver education and assistance, Mack said.
She could not confirm the amount of AustralianSuper's investment or other funds that had expressed interest, but said she was confident the centre would reach its funding target of $30 million to open on 1 July.
"It's (AustralianSuper's) put one condition on it - that the centre must absolutely be seen to be independent for consumers; in no way can the centre be perceived to be another industry body," she said.
To avoid conflicts of interest, funds were restricted to coming in for three-year periods and the endowment model - where a long-term pool of capital was acquired - would avoid government influence, according to Mack.
"Once the industry has made a contribution into that fund, it will have no say," she said.
Some funds wanted a credible social media platform for consumer opinion on superannuation after being victims of social media attacks, she said.
An industry levy was inappropriate as the centre was designed in the "spirit of collaboration" between consumers and industry, Mack said.
Mercer found the centre could operate for 30 years on $30 million investment, with spending of $1.8 million a year.
Mack said $30 million was not a lot considering Australia's superannuation pool, and although consumers could not support the initial investment, the centre would move to a consumer-funded model in the future.
The centre was an important tool in re-establishing consumer trust in the super system, she said, which was evident in "the flight to self-managed super funds".
Mack said the centre was already working with the Coalition, and if it was successful at the next election and pushed through its "son of Wallace" promise, the pair would focus on the super system's retirement structure.
She did not rule out the possibility the centre would lead class actions on behalf of consumers.
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