Turnbull Government eyes changes to super

THE Turnbull Government is introducing legislation to wrestle control of superannuation away from the unions and into the hands of employees.

Army Aboriginal Community Assistance Program 2014

THE Turnbull Government will introduce legislation allowing all employees to choose their own superannuation fund — wrestling control of “money that belongs to workers” away from the unions.

Assistant Treasurer Kelly O’Dwyer said around 26 per cent of Australian workers were currently bound by enterprise bargaining agreements which dictated their superannuation fund.

Preposterous ... MP Kelly O’Dwyer has slammed the current superannuation laws. Picture: CPL Jake Sims

At a press conference in Hobart on Monday, Ms O’Dwyer confirmed the government would make changes to superannuation laws which would give every employee a choice.

“I’ll give you an example,” she told reporters.

“Somebody wrote to me not that long ago. He was a student who was working part-time at a supermarket and also working part-time as a tutor at university.

“He is forced through his enterprise agreements to put money into two separate funds.

“That means two separate fees, two separate insurance premiums, and it means for him ultimately less retirement income when he ultimately retires in the years ahead.”

The Australian reports the government will look to introduce the changes when Parliament resumes next month.

It comes after the release of the damning final report by the Royal Commission into Trade Union Corruption in December.

Minister for International Development and the Pacific Steve Ciobo said trade unions had “vested interests” in industry superannuation funds.

“This is money that belongs to workers; workers should have a choice as to where they put their money,” he told Sky News.

“Only in the perverse world of the union movement, which is more about protecting the union movement and protecting their linkages to the Labor Party do you get a situation arise where they would actually say to Australian workers: ‘No, no, look, you can’t be trusted to make decisions about where you want to put your own money. Better to outsource that to the union movement’.

“We think that’s preposterous.”