By disallowing the Government’s regulations to allow portability from superannuation funds the Opposition is holding fund members hostage to funds chosen for them by someone else, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.
“It is hard to believe in this day and age that anyone could seriously suggest Australian workers cannot have a say about where their superannuation money goes.
“Portability is a policy designed to give superannuation members greater ownership of their superannuation funds, to save on fees and charges, and to inject a shot of competition into the arm of the superannuation industry.
“The extraordinary thing about the disallowance motion is that, despite the confected outrage and rhetoric, the Senate Select Committee on Superannuation unanimously supports the principle of portability and supports the ability of individuals to consolidate their superannuation accounts.
“Even the Labor Party acknowledges that it is desirable to consolidate multiple accounts and concedes that portability is already widely available from inactive accounts.
“So what we have here is, contrary to their stated desire to protect the ordinary worker, the Labor Party is now discriminating against those workers who do not already have the right to consolidate accounts and save on fees and charges.
“If the Labor Party had their way, then all fund members would be forced to consolidate their superannuation accounts into an account determined by the ALP regardless of how informed those members may be about their current investments or the performance of the active account members.
“The Senate’s failure to support the Government’s portability regulations means workers will be forced to maintain multiple superannuation accounts, incurring higher fees and be locked into superannuation funds that may not meet their needs.
“It is time to end discrimination against those consumers who do not already have portability.
“Portability should be the right of everyone and this Government is
committed to delivering it.”