Super promise unites sector's rivals
The Financial Services Council, representing for-profit "retail funds" run by banks, and Industry Super Network, representing the not-for-profit, union-aligned "industry funds", have traditionally been rivals.
But the lobby groups said on Thursday the super system's maturity required a united approach.
"On the eve of the election we are signalling to Canberra that the ISN and the FSC will work together on many key issues impacting fund members," FSC chief executive John Brogden said.
ISN's chief David Whiteley said the two groups should "lead the elevation of superannuation out of the political discourse and ensure policy making is considered, sector neutral and even handed".
Industry funds have traditionally outperformed retail funds, although this was not the case in the 2013 financial year. The Coalition has flagged plans to scrap the requirement that industry funds have equal numbers of employee and employer representatives on their trustee board.
The alliance follows an announcement by Treasurer Chris Bowen that a re-elected Labor government would not touch the taxation of super for five years - an idea that Australia's first superannuation minister Nick Sherry recently suggested was unrealistic.
The super industry has had some big wins over the past few years, including legislation to raise the super guarantee by a third to 12 per cent and self-managed super funds being able to borrow money to buy property.
But it had been angered by Labor's plans announced in April to introduce a tax on retirees whose private pensions are earning more than $100,000 a year.
Frequently Asked Questions about this Article…
Treasurer Chris Bowen announced that a re‑elected Labor government would not change the taxation of superannuation for five years — effectively quarantining super from tax changes to give the $1.6 trillion retirement savings sector short‑term certainty.
The FSC represents for‑profit ‘retail funds’ run by banks, while the ISN represents not‑for‑profit, union‑aligned ‘industry funds’. Although traditionally rivals, both lobby groups say the maturity of the super system means they will now cooperate on key issues affecting fund members and push for sector‑neutral, even‑handed policy making.
The article notes Australia’s retirement savings sector totals about $1.6 trillion. For everyday investors, that scale means policy decisions and lobbying efforts by groups such as the FSC and ISN can have wide‑ranging effects on fund rules, taxation and governance.
Industry funds are described as not‑for‑profit and union‑aligned, while retail funds are run by banks and operate for profit. The article says industry funds have traditionally outperformed retail funds, although that was not the case in the 2013 financial year.
The article highlights legislation to raise the superannuation guarantee by a third to 12 per cent and a change allowing self‑managed super funds (SMSFs) to borrow money to buy property as notable recent wins for the industry.
The Coalition has flagged plans to remove the requirement that industry funds have equal numbers of employee and employer representatives on their trustee boards — a governance change that could alter how industry funds are run.
Yes — the article says Labor announced plans in April to introduce a tax on retirees whose private pensions earn more than $100,000 a year. However, the later five‑year pledge to not touch superannuation taxation indicates a broader commitment to avoid tax changes for that period.
According to the FSC and ISN, their cooperation signals a push to lift superannuation out of political debate and to work together on issues affecting fund members. For investors, that could mean more unified advocacy for stable, sector‑neutral policy — and clearer messaging to Canberra about industry priorities.
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