POWERED BY MOMENTUM MEDIA
Make selecting a super fund compulsory says EQT
In a submission filed as art of the Senate Economics Legislation Committee’s inquiry into the Government’s legislation changing default superannuation arrangements, Equity Trustees said the legislative changes did not go far enough.
“The continued operation of default funds and the lack of compulsion for employees to select their own superannuation fund may perpetuate disengagement and multiple accounts (and the knock-on implications of increased fees and insurance costs to superannuation members),” the submission said.
“Equity Trustees would make the case that the whole superannuation system should be based on a foundation of requiring all employees to exercise choice of superannuation fund.”
The submission said that given that the superannuation guarantee had now moved beyond its origins as an employee benefit to a legislated requirement, the employer’s role in selecting default funds for its employees had become redundant.
“Likewise, having any other agent select default funds exposes the employee to the interests of those bodies without any legislative protection requiring those bodies to act in the member’s best interest,” it said.
“Equity Trustees would therefore propose further legislation is enacted to ensure all employees are provided the opportunity to select a superannuation fund.”
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
I absolutely agree. You have to choose your own bank account, so make people responsible for choosing their own super fund too
Dare I say it …. default into the Future Fund allowing the member to opt out ??? Food for thought ???