The Fraser Governance Review affirms what millions of Australians already know, that industry super funds provide a peerless service for Australians saving for and enjoying their retirement.
The report recognises that the not for profit superannuation system is focussed solely on providing for members and notes its well-earned reputation for delivering a high-value, low-cost service which should be held up as an example to the entire industry. Mr Fraser’s review of super fund governance, commissioned more than a year ago, also upheld industry super funds’ long-held stance that the equal representation model was optimal and was responsible for their superior performance.
The union movement welcomes Mr Fraser’s focus on skills and expertise necessary for directors of funds rather than mandatory quotas and is happy to engage in meaningful debate regarding the recommendations concerning filling board positions. We stress that the direct experience with members and the knowledge of relevant industries often brought to boards by directors drawn from sponsor organisations must continue to be valued.
It is clear from the report that any tampering with the established system by the Turnbull Government, especially any changes which would remould industry super in the image of the scandal-plagued, profit-driven banking sector, would not be in the interests of Australians hoping to enjoy a full retirement.
Australian workers will continue to rely on industry superannuation to stand alone in the financial sector as a system built around the needs of fund members, and we welcome the opportunity provided by this report to have a level-headed conversation about how to further improve this system with members’ interests as the sole consideration.