Industry funds hit back as government takes aim
Industry Super Australia (ISA) has hit back following a swing from the government, saying that banks are pressuring politicians to shake up protective superannuation laws.
ISA released a ratings report that shows industry super funds outperformed bank-owned retail funds, by more than 2 per cent in some cases.
According to the February SuperRatings numbers, industry super funds in the SR 50Balanced Option have consistently outperformed bank-owned retail super funds through the decade – by 2.02 per cent over three years, 2.16 per cent over five years, 2.05 per cent over 7 years and 2.21 per cent over 10 years.
The results were released on the back of a new ad by ISA that likened the big four banks to foxes raiding a hen house.
Minister for Revenue and Financial Services Kelly O’Dwyer was quick to deny suggestions that changes to the default super model were in the pipeline.
“This campaign is jumping at shadows,” Ms O’Dwyer said. “The basis of the campaign is bizarre.”
“But the main problem is, this is not how members’ superannuation savings should be being spent.
“It is beholden on industry super funds, which bankroll ISA using members’ retirement savings, to disclose to their members how much they have contributed to this latest round of self-indulgent scare campaigning and lobbying.”
ISA’s chief executive David Whiteley remains adamant that banks were lobbying to dismantle the current industry super fund model.
“The banks are quietly pressuring federal politicians to remove the laws that protect Australians who save through workplace default funds. If they succeed, the super savings of millions of Australians could be at risk,” Mr Whiteley said.
“The trustworthy and high-performing industry super fund model has consistently outperformed bank-owned funds for two decades.
“There is no reason to dismantle the system that works best for members. If anything, more needs to be done to look into the chronic underperformance of bank-owned super.”