ALP’s super reform meets unlikely bloc

Labor’s new superannuation regulations, which override the requirement for funds to publicly disclose donations and payments, are likely to be overturned.

Greens economic justice spokesman Nick McKim. Picture: NCA NewsWire / Gary Ramage

Labor’s new superannuation regulations which override the requirement for funds to publicly disclose donations and payments are likely to be overturned after a six-month campaign waged by Senate crossbenchers and the Coalition.

Greens economic justice spokesman Nick McKim on Tuesday announced he would support Tasmanian Senator Jacqui Lambie’s disallowance motion against the reforms, paving the way for the motion to succeed in the Senate on Wednesday.

An unlikely coalition of Senate crossbenchers including Senator Lambie and Tammy Tyrrell, ACT independent Senator David Pocock and Liberal Senator Andrew Bragg have been united in their attempt to block Labor’s superannuation reforms amid concern the regulations watered down integrity and reduced funds’ financial accountability to members.

Last September, Assistant Treasurer Stephen Jones reversed a reform by the former Coalition government which required funds to itemise spending on “non-political” payments and instead disclose them in aggregate form, meaning funds would not have to individually reveal what money was spent and where.

Mr Jones has argued the changes were designed to reduce red tape and that forced itemisation of payments meant some were accounted for twice.

Amid crossbench mutiny, Mr Jones had sought to negotiate with the Greens to ensure the success of Labor’s superannuation regulations with the minor party promising to support the bill if Labor introduced civil penalties of up to $1.1m for senior banking executives who failed to comply with financial rules.

But Senator McKim on Tuesday announced he would be supporting Senator Lambie’s disallowance motion after his deal with Mr Jones turned sour.

The Australian understands the Greens were furious after Mr Jones reneged on a promise to crack down on banking executives.

Senator McKim said Mr Jones needed to understand there were “consequences” for breaking their agreement, and pointed out that the banking industry had donated over $400,000 to Labor as revealed in annual disclosures.

“Last year the minister agreed to million dollar fines for dodgy bankers, but after a day of lobbying by the banks, the minister went back on his word,” Senator McKim said.

Opposition assistant treasury spokesman Stuart Robert, who spearheaded a campaign to wind back Labor’s changes to superannuation disclosure requirements by writing to all crossbenchers urging them to oppose the new rules, said Mr Jones must rule out any future moves to water down transparency measures.

Senator Lambie said the Greens’ support for her disallowance motion would be a victory for all people who want their retirement savings for themselves instead of “putting their super fund’s logo on a footy”.

“It‘s great the Greens appear to have seen the light and are putting transparency first. I’m grateful for it. They deserve credit for it. It’s not an attack on super funds to say that they should be accountable to their members,” Senator Lambie said.

The Australian last week reported the annual disclosures revealed close links between super funds and unions in the past financial year, with millions of dollars flowing between the two entities.