Excluding choice superannuation funds from the Your Future, Your Super performance test is a direct contravention of the Hayne Royal Commission recommendations, according to the Australian Labor Party.
Speaking at the House of Representatives, Opposition leader, Anthony Albanese said all super funds should be subject to the performance test but that the Government did not believe this.
“They're excluding funds that some three million Australians are members of. They're some of the for-profit funds. They're some of the funds with the highest fees,” he said.
“They're some of the worst performing funds. How surprising. And this is in contrast to the recommendation of the financial services royal commission.
“It's in direct contravention of it. But they're prepared to stand up for these funds because they don't actually want a level playing field—because, when you look at a level playing field, industry super wins every time as the best performers.”
Also speaking, Shadow Minister for Financial Services and Superannuation, Stephen Jones said the government was “intent on turning a blind eye to funds which have the highest fees and the lowest performance”.
“There is no other explanation for the fact that the government has excluded those funds, which cover over three million employees,” Jones said.
“The Productivity Commission has said that without government action those three million employees will languish in those funds forever, earning subpar returns and getting high fees.
“The cost over a lifetime is in excess of $240,000 in lost retirement income.”