Senate strikes a blow to superannuation reforms

04 December 2015

A Federal government attempt to regulate the composition of industry super fund boards has been rejected by crossbench senators. Independent senators Glenn Lazarus, Jacqui Lambie, John Madigan and Nick Xenophon – along with the Labor and the Greens – announced on Wednesday that they could not support the government’s plan because industry funds were not involved in recent financial scandals that had eroded the retirement savings of thousands of Australian workers.

The reform legislation, which would have forced industry funds to have one-third of their boards comprised of independent directors, was not put to a vote in the upper house following the announcement. The government needed six of the eight crossbench votes to have its legislation clear the Senate against Labor and Greens opposition.

David Whiteley, Chief Executive, Industry Super Australia said the laws were “…championed by the big banks in their constant push to gain greater market share in super” and claimed the definition of independent in the legislation was highly contentious with far-reaching powers for APRA to have a final veto over selection.

Photo: AAP