The Your Future, Your Super law package could have been a ground-breaking super reform that finally ridded the system of underperforming funds and ensured the disgraceful misconduct by super trustees revealed at the Banking Royal Commission could not happen again.
But instead, it will be the Federal Government's greatest gift to the Big Banks and the for-profit super sector, allowing them to skim up to $10 billion a year in profit1 no matter how bad the investment returns.
Industry Super Australia submission in response to the proposed reform will detail how the package favours the for-profit sector by:
- Never making retail funds prove how taking billions a year in profit through inflated related party payments is in the best financial interest of members,
- Excluding the for-profit sector's most excessive fees from performance benchmarks,
- Shield most sub-par for-profit products from performance tests,
- Tying the not-for-profit sector down in costly red tape,
- Prohibiting industry funds from using advertising to promote their comparative outperformance or warn members about changes that could erode their savings.
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