Superannuation rivals adopt united approach on key issues

By InvestSMART · 2 Aug 2013

By InvestSMART ·
2 Aug 2013

Comments

Rival superannuation lobby groups are putting down their swords, with the $1.6 trillion retirement savings sector winning a promise from Labor to quarantine super from taxation changes for five years.

The Financial Services Council - representing for-profit "retail funds" run by banks - and Industry Super Network - representing non-profit, union-aligned "industry funds" - have traditionally been rivals.

But the lobby groups said on Thursday that 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 in a joint release.

ISN chief executive David Whiteley said the two groups should "lead the elevation of superannuation out of the political discourse and ensure policymaking is considered, sector-neutral and even-handed".

Industry funds have traditionally outperformed retail funds, although this was not the case last year.

The alliance between the retail and industry groups follows a surprise announcement by Treasurer Chris Bowen that a re-elected Labor government would not touch the taxation of super for five years - an idea Australia's first superannuation minister, Nick Sherry, recently suggested was unrealistic.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What recent agreement did rival superannuation lobby groups make?

Two rival lobby groups, the Financial Services Council (FSC) and the Industry Super Network (ISN), announced they will work together on key issues affecting superannuation fund members, signalling a united approach to policymakers in Canberra.

Who are the FSC and the ISN and what do they represent?

The Financial Services Council (FSC) represents for‑profit retail superannuation funds usually run by banks, while the Industry Super Network (ISN) represents non‑profit, union‑aligned industry funds.

Why are the FSC and ISN choosing to cooperate now?

The two groups say the superannuation system's maturity means it needs a sector‑wide, even‑handed approach to policymaking. They want to elevate super out of partisan political debate and work together on issues that affect fund members.

What did Labor promise about superannuation tax changes?

Treasurer Chris Bowen announced that a re‑elected Labor government would not change the taxation of superannuation for five years, a commitment that prompted joint support from the FSC and ISN.

How might this alliance between lobby groups affect everyday investors?

According to the article, the alliance signals coordinated advocacy to Canberra on matters affecting fund members. That could mean a more consistent industry voice on policy issues that influence retirement savings, although the article does not detail specific outcomes for investors.

Do industry super funds perform better than retail funds?

The article notes that industry funds have traditionally outperformed retail funds, but it also points out that this was not the case in the most recent year mentioned.

Who commented on the new united approach and what did they say?

FSC chief executive John Brogden said the FSC and ISN will work together on many key issues impacting fund members, and ISN chief executive David Whiteley called for sector‑neutral, considered policymaking to lift superannuation out of political discourse.

What is the significance of this joint stance for Australia’s $1.6 trillion retirement savings sector?

The joint stance highlights the maturity of Australia’s $1.6 trillion superannuation sector and secured a five‑year commitment from Labor to avoid tax changes to super. It reflects a move towards unified industry engagement with policymakers on retirement savings issues.