Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

I seek leave to amend general business motion No. 84 standing in my name relating to the production of a Productivity Commission report on the selection of default superannuation funds and the modern awards by omitting 30 April 2011 in paragraph (c) and substituting 31 May 2011.

Leave granted.

I move the motion as amended:

That the Senate—

(a)

notes that:

(i)

the current process to select default superannuation funds under modern awards is not transparent, not objective or evidence based, not competitive and not subject to systematic review,

(ii)

the top ten most commonly listed default funds under modern awards are all union based industry super funds, with these ten funds listed as default super funds in modern awards 330 times,

(iii)

the Cooper Review into superannuation also confirmed that current default superannuation fund arrangements undermined competition as new employees typically become a member of a default fund, and

(iv)

a competitive, transparent and efficient superannuation industry is critically important to maximise value for all superannuants;

(b)

endorses the Labor Party’s commitment before the 2010 election to instruct the Productivity Commission to design a process for the selection and ongoing review of the superannuation funds to be included in modern awards or enterprise agreements as default funds; and

(c)

orders that there be laid on the table, no later than 31 May 2011, a report by the Productivity Commission on the design of a process for the selection and ongoing review of the superannuation funds to be included in modern awards or enterprise agreements as default funds, with the requirements that:

(i)

the process is to be based on objective criteria and evidence and be subject to systematic review, so that the selection and ongoing review of eligible default funds is transparent and competitive,

(ii)

the process is to help maximise employees’ retirement incomes by ensuring that only those superannuation funds that deliver – and continue to deliver – the best results to their members are able to be included as default fund options in modern awards and enterprise agreements, and

(iii)

in designing the process the Productivity Commission make reference to the existing sophisticated system of superannuation fund ratings which has evolved over the past 20 years and is already used widely by employees, employers and financial planners in making decisions on fund selection.

Question agreed to.