Senator Andrew Bragg calls for more transparency in super funds’ payments to unions, employers
The federal senator who controversially suggested superannuation should be voluntary for the low-paid has picked a new fight — this time with funds that don’t tell members how much money is going to unions.
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The federal senator who controversially suggested superannuation should be voluntary for the low-paid has picked a new fight — this time with funds that don’t tell members how much money is going to unions.
NSW Liberal senator Andrew Bragg said the Construction Forestry Maritime Mining and Energy Union (CFMMEU) received $1.45 million in 2017-18 from super funds.
He told The Daily Telegraph most of that was from Cbus.
The $47 billion building workers’ fund disputes that claim.
Since entering parliament earlier this year Mr Bragg has been advocating for a shake-up of the $1 trillion-plus sector, which he argues has failed to work in the best interest of Australians.
Last month he used his maiden speech to parliament to say super should be voluntary for those earning under $50,000 a year.
RELATED: New senator calls for super to be voluntary for low-paid
His positions are not the policy of the Morrison government, although it is preparing a major review of the retirement income system.
It was inappropriate that members were unaware of payments made by their super fund to “registered organisations”, Mr Bragg said.
Industry Super Australia chairman and former Labor federal minister Greg Combet dismissed the criticisms.
“This is a furphy,” he said.
While industry funds did provide money to unions, the payments were not donations, Mr Combet said.
Typically they were to cover the director fees for union representatives on fund boards.
A Cbus spokesman said its annual financial statements disclosed “member partnership payments”.
The most recent statement reveals $1.55 million was paid by Cbus to unnamed “member sponsoring organisations” for “marketing and promotion”.
The Cbus spokesman said the money went to six unions, including the CFMMEU.
The statement shows Cbus paid employer groups $530,000.
“Cbus discloses partnership payments made to both employer and member sponsoring organisations in our audited financial reports each year,” the spokesman said.
“Any inference that Cbus makes political donations or funds political activity is wrong and offensive,” he said.
“The Hayne Royal Commission conducted a thorough examination of Cbus partnership arrangements and found them to be ‘rigorous’ and that the fund had put in place steps to make sure members’ money is spent appropriately and achieves the desired results.”
Mr Bragg also said NAB had put the interest of shareholders ahead of fund members.
The royal commission found the bank charged 220,000 retirement savers by $87 million for services that weren’t delivered.
Labor’s financial services spokesman Stephen Jones said a group of Coalition MPs and senators including Mr Bragg was intent on “blowing up the superannuation system”.
Their goals included stopping the legislated increase in superannuation contributions to 12 per cent by 2025. It is 9.5 per cent now.
Superannuation was a hotly contested issue in the federal election earlier this year. Labor’s proposed changes to franking credits and increased taxes on contributions for higher income earners.