Ministers challenged to show benefits if backing super cap

The boss of a major investment fund has challenging federal ministers who back a superannuation cap of $3m or $5m to disclose their own retirement benefits.

Former Australian treasurer Wayne Swan is now chairman of industry superannuation fund Cbus. Picture: Glenn Hunt/The Australian

The boss of a major investment fund has warned the Albanese government against supporting a superannuation cap of $3m or $5m, challenging ministers who back the proposal to disclose their own retirement benefits.

Clime Asset Management chair John Abernathy and former prime minister John Howard on Friday accused the government of hypocrisy and a lack of transparency when it came to superannuation reform and retirement perks for politicians.

“If you look at these industry funds and who they are chaired by, it’s almost like a House of Lords for Labor politicians,” Mr Howard said, adding that the funds were “politically motivated”.

Mr Abernathy, who ran NRMA Investments and was a key architect in proposing investment options for self-funded retirees, said current government ministers could put more money into super funds than “anyone else in the country” and needed to be careful about inciting a conflict between politicians past and present and the Australian public.

He called on ministers supporting capping savings at $3m or $5m to disclose their retirement benefits, asking “how can Wayne Swan come out and say $3m is fine when the guy is getting a massive salary and a lifetime pension?”

The introduction of caps would also need to be accompanied by other changes, he said.

“When you say a finite level of $3m, I know it sounds like a lot of money, but those people have to take money out every year under the withdrawal requirements of the legislation as they get older,” Mr Abernathy said.

“If you’re going to put a limit on it, then you have to adjust the withdrawal levels.”

On Friday, Anthony Albanese disputed figures published by right-wing think tank the Institute of Public Affairs, which suggested he could claim up to about $400,000 a year when he retired from parliament.

“These things are available but the IPA, who put out these figures [out], have an agenda … The IPA have an agenda that isn’t about progressing Australia,” he said.

Mr Albanese refused to provide an estimate of how much he would be entitled to receive.

The IPA also estimated that ALP national president and former Labor treasurer Wayne Swan was entitled to a figure in the order of $300,000 a year.

Mr Swan, who defended the government’s superannuation objectives as “simple” and “modest”, is among three other former Labor frontbenchers to hold chair positions at major industry super funds.

Greg Combet. Picture: Nick Cubbin

Nicola Roxon. Picture: Supplied

Mr Swan, who has led the ALP’s national executive since 2018, became chair of industry ­superfund giant Cbus in January last year, earning $110,000 to last June. Former frontbench colleague Greg Combet has been chair of Industry Super Australia since late 2018, a collective body representing 16 of the country’s biggest industry super funds.

Nicola Roxon, another frontbencher during the Rudd-Gillard government, became chair of HESTA in 2019, after resigning from politics at the 2013 election.

In the past financial year, the former attorney-general earned $184,000 as chair of the health service superfund.

Nick Sherry, former superannuation minister and assistant treasurer in the Rudd-Gillard governments, became chairman of the $6.4bn transport superfund TWUSuper last May. The previous chairman, prominent Victorian lawyer David Galbally, drew a salary of $295,000 in his final year.