Superannuation savings should be directed to investments that provide the best returns for fund members, not the best political dividends for the Labor Party.
"Labor leader Kim Beazley, who wants to siphon off superannuation savings to fund infrastructure projects, is putting his own political aspirations ahead of the nation's $650 billion in retirement savings," Federal Assistant Treasurer, Mal Brough, said today.
"Mr Beazley should know that superannuation funds can consider any investment project that would deliver good returns for their members. There is absolutely nothing stopping superannuation funds from investing in infrastructure projects right now if they think it represents a valuable return for members," Mr Brough said.
"Mr Beazley has based his infrastructure proposal on the false premise that a substantial proportion of superannuation investment goes overseas. However, more than 80% of Australia's superannuation savings are invested here at home and overseas assets represent just 17%.
"So while Mr Beazley suggests he doesn't want funds to be involved in imprudent investments, any Labor interference in fund choices would have the effect of moving funds from current investments to potentially less prudent investments."
Mr Brough said Kim Beazley's super plans have more to do with advancing Labor policies than increasing retirement savings for hard-working Australians.
"At the last election, Labor was proposing to rip nearly $4 billion over three years out of retirement savings to fill a black hole in their tax policy. Now the entire $650 billion is being targeted.
"Clearly a change in Labor leadership has not seen a change for the better on superannuation policy.
"Superannuation is there to fund people's retirement, not the Labor Party's pet-projects."