A ‘purpose’ that allows superannuation funds to invest in government social ventures will rob successful businesses of funding and diminish retirement incomes.
The government has been signalling a significant change in the rules superannuation funds operate under, but the consequences of these changes are probably not fully appreciated.
Until now, super fund managers, guided by the law, have always focused on maximising financial returns to members while remaining low-risk, delivering positive returns through blue chip investments rather than worthy causes.
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David Alexander is chief of policy and advocacy at the Australian Chamber of Commerce and Industry.
