POWERED BY MOMENTUM MEDIA
Shorten pre-empting Productivity Commission: Mathias Cormann
The Federal Opposition has accused the Minister for Financial Services and Superannuation, Bill Shorten, of seeking to circumvent the Productivity Commission inquiry into default funds under modern awards by imposing the Government's own preferred outcome.
The Opposition spokesman on Financial Services, Senator Mathias Cormann, said the minister was trying to bully the Productivity Commission by pre-empting its findings and final recommendations due in October.
His comments followed the minister choosing to throw the Government's support behind a submission to the Productivity Commission compiled by two of his own departments - Treasury and the Department of Education, Employment and Workplace Relations.
Further, that submission substantially supports the positions adopted by both the Industry Super Network and the Australian Institute of Superannuation Trustees, ensuring the continued involvement of an expert panel with Fair Work Australia.
Cormann described the minister's approach as inappropriate, and claimed the existing system involving Fair Work Australia inappropriately favoured "union-dominated industry funds".
"All the way back in August 2010, Labor promised to ensure default funds under modern awards would be selected through a more transparent and competitive process if re-elected to government," he said.
"Clearly guided by a desire to give his union friends the strongest possible competitive advantage, Bill Shorten waited as long as possible before getting the Productivity Commission review underway.
"Now that it's underway, he wants to gazump the process," Cormann said.
Senator Cormann said the minister's announcement had "effectively confirmed he will ignore the recommendations of the Productivity Commission so he can continue to put the interests of his union friends ahead of the public interest".
"After ongoing delays, the minister was dragged reluctantly to commissioning the Productivity Commission review," he said. "Now this announcement confirms the Government has no intention of even considering the recommendations, because the Government has already made up its mind."
Cormann said that, unlike the Government, the Coalition would consider the recommendations of the Productivity Commission and deliver genuine competition into the default fund market.
Originally published on Money Management.
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(%)
