Super Under Threat

What the banks want

Despite all the financial advice scandals that have plagued the big banks in recent years, they want the government to help them get their hands on more of people’s retirement savings by dismantling the model of not-for-profit super funds- which are generally industry super funds, that are run only to benefit their members, and don’t help generate profits for shareholders.

The big banks also want the government to remove protections in the system which provide employers with a list of quality approved funds that they can use at their workplace as a default fund.

We want the government and other members of Parliament to stop the banks getting their hands on your super.

What could happen if the banks have their way with super laws?

Ordinary Australians saving for their retirement could be worse off if the government bows to the pressure from the big banks. The changes the banks want could:

  • Diminish the voice of super fund members by dismantling the model of not-for-profit super funds through legislative changes to super fund governance. Independent modelling by SuperRatings shows that Industry SuperFunds have, on average, delivered members more when compared to retail (including bank-owned) super funds over the last 10 years. [1]
  • Remove protections for those workers who have their super in the ‘default fund’ at their workplace. Some people could have their savings put into a poor performing bank-owned super fund, possibly without realising the impact.

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