APRA ‘must probe ballooning super payments to unions’, says Andrew Bragg

Liberal senator Andrew Bragg says he will urge Australia’s prudential regulator to investigate ‘ballooning’ payments between industry super funds and trade unions.

Liberal senator Andrew Bragg. Picture: NCA NewsWire / Gary Ramage

Liberal senator Andrew Bragg says he will urge Australia’s prudential regulator to investigate “ballooning” payments between industry super funds and trade unions after new documents revealed millions of dollars flowed between the two entities.

According to the Australian Electoral Commission’s annual disclosures, millions of dollars flowed from trade super funds to unions in the past financial year, with the highest payment from First Super to the Construction Forestry Maritime Mining and Energy Union for $2.5m.

The CFMEU also declared tens of thousands of dollars in payments from other funds including United Super ($520,000) and CBUS ($225,000).

The union was the second largest “third party” campaign spender last year and the largest donor to the Labor Party, giving $4.3m in total.

Other unions to have revealed close links to super funds included the United Workers Union, which declared $269,000 from HostPlus and $21,000 from Hesta, while the Australian Council of Trade Union declared payments from Industry Super Australia ($66,000), CBUS ($55,000) and Hesta ($54,000).

Deputy chair of the economics legislation committee, Senator Bragg said he would ask the Australian Prudential Regulation Authority to investigate the payments, calling on the regulator to put an end to “uncommercial” payments.

“This is a day of shame for Financial Services Minister Stephen Jones as the AEC is giving the public a taste of the payments he has covered up. The reality is that few Australians will go to the trouble of searching the register. That’s why we put the payments in the member statements,” Senator Bragg said.

“I will ask APRA to investigate these ballooning payments.

“The best financial interest test law is designed to protect members. APRA’s job is to put an end to these seemingly uncommercial but political payments.”

The revelations come after Labor last year removed a requirement for super funds to publicly disclose itemised spending on non-political payments.

Several Senate crossbenchers have been pushing Labor to overturn the regulatory changes in a bid to water down integrity and reduce funds’ financial accountability to members.

Payments from industry super to trade unions have ­become politically contentious, with the Coalition accusing some of the country’s largest funds of effectively supporting the ALP through the transfer of millions of dollars a year for services and directors’ fees.

A CFMEU spokesman said payments from super funds were for board fees, sponsorship and promotions. “All … are disclosed to APRA,” he said.

The CFMEU has also declared a $15m payment from Incolink, the nation’s largest entitlement scheme whose board members include leading Victorian union figures such as CFMEU boss John Setka and Plumbing and Pipe Trades Employees Union state secretary Earl Setches.