Kate Chaney (Curtin, Independent) Share this | Hansard source

I second the disallowance of the Superannuation Industry (Supervision) Amendment (Annual Members' Meetings Notices) Regulations 2022, which has the effect of reducing the transparency of how super funds are being spent for members. Instead of itemising each sponsorship, political donation, payment to a union and payment to a related entity under the regulations, these are able to be combined and disclosed as a lump sum.

The argument for the regulations is that they reduce the reporting and regulatory burden, therefore ultimately reducing members' fees. But super funds are required to keep accounts and record all this information, and the cost of disclosure would be immaterial. It's hard to believe that in the context of billions in fees the cost of transcribing payments made from a superfund's accounting system to a public notice of meeting would be significant. So, I'm not convinced by argument of cost.

I'm supportive of Australia's superannuation system. It's an example of farsighted policy with an intergenerational impact. Australians now have more than $3.3 trillion in superannuation, paying about $30 billion each year in fees, either directly or via companies that help manage investments. That is nearly two per cent of Australia's GDP. The Grattan Institute points out that we pay more in super fees than we spend on energy. A household nearing retirement pays average superannuation fees of $3,700 each year.

Members of super funds should be able to easily find out how their money is being spent. Spending needs to be disclosed in a way that's digestible and informative. I'm not suggesting that the previous government's legislation about superannuation payment disclosure was perfect, but it's unlikely that reducing the detail will make it better. If the intention of the regulation was only to remove double counting for greater clarity, I would support it. But it goes much further than that to reduce transparency. 'Streamlining' is sometimes used as code for reducing.

Since the last election, the government has spoken about its intention to increase transparency and integrity, and I'm pleased to have been part of the parliament that passed the National Anti-Corruption Commission Bill. Given the government's relationship with unions, it's important that similar transparency is protected in other systems, including our huge superannuation system. Transparency is the key to rebuilding trust. Australians want to know if their super fund is making political donations and to whom. They want to know if their super fund is providing large sponsorships to sporting teams or other bodies. They want to know if their super fund is making payments to unions. And they want transparency on whether their super fund is making payments to related entities. The requirement to itemise these spending items in the notice of meeting might not provide all the detail, but it at least provides the opportunity to seek further information at the subsequent annual meeting if something doesn't seem right.

Wherever there's money and power there's a need for transparency to rebuild trust in our systems. This is true in our superannuation system, just as it's true in our political system. I support the disallowance motion in relation to the Superannuation Industry (Supervision) Amendment (Annual Members' Meetings Notices) Regulations 2022 because our communities want more transparency, not less, in relation to money and power.

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