Not so super changes coming to superannuation

The Morrison Coalition government before the election was touting a range of terrible changes to superannuation and especially to industry superannuation funds. Before the election it became obvious that people didn’t like the proposed changes so Morrison and his ministers stopped talking about it. But they clearly haven’t stopped thinking about those changes as they’re set to come back.

Now with the election over, and Morrison getting away with not telling Australians their plans, the Coalition is seeking to reintroduce these pieces of legislation.

Among the changes being proposed, which will have a significant negative impact on your superannuation, is one which will see workers’ representatives on superannuation boards being kicked off and replaced with so-called independent directors with corporate experience. We know this means there is an attempt to weaken the returns that industry superannuation funds achieve and drive more superannuation money into the hands of the big banks.

Other changes to superannuation include passing to the ATO any superannuation accounts with less than $6,000 and taking away insurance options for people under the age of 25. Both of these measures are unnecessary, and could see people having their super accounts stolen from them, and having their insurance pulled out from underneath them. Plus it will also make getting insurance more expensive for young people, and again forcing them to the big banks for insurance.

None of the measures being proposed by the government will make our superannuation system better or improve the returns that funds generate. The measures are purely designed to smash workers’ involvement in industry superannuation funds and ensure more superannuation money ends up with the big banks. We all now know how dodgy the big banks are thanks to the Royal Commission but the Morrison Government remains beholden to the big end of town and continues looking for ways to drive more superannuation money to the big banks.

We will continue to keep members informed of potential changes to superannuation that the Morrison Government will seek to introduce; and the potential impact those changes will have on your retirement.

Paul Elliott

This article is for information only. If you’re at all concerned about your superannuation and want advice please make sure that you contact your Superannuation Fund to discuss your situation.

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