Significant law reform is needed to clamp down on superannuation payments to trade unions, according to Senator Andrew Bragg.
Data from the Australian Electoral Commission, $12.9 million was paid from super funds to unions in the 2020/21 financial year. This was a record sum and up from $11 million in the previous year.
This data was often not voluntarily disclosed in financial results or annual reports.
“Super funds are becoming the biggest political donors in the country. This is a disgrace”, said Bragg.
“Superannuation is supposed to be for workers but it has turned into a sinkhole for unions and banks.
“Union advertising during the upcoming election will be underwritten by superannuation. That is, retirement savings will pay for political advertising.
“It is hard to think of another policy which allows political and private interests to directly benefit at the expense of Australian workers.”
He highlighted the fact construction-focused Cbus was currently raising $63 million from its members to pay fines because trustee CFMEU refused to pay the finds.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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