Changes to industry super funds blocked

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Changes to industry super funds blocked

The ALP and the Greens will block legislative attempts by the federal government to impose more stringent rules on the structure and governance of industry super funds.

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The ALP and the Greens will block legislative attempts by the federal government to impose more stringent rules on the structure and governance of industry super funds.

The Superannuation Legislation Amendment (Trustee Governance) Bill 2015 was introduced to parliament soon after Tony Abbott was replaced as prime minister in September. It would force not-for-profit industry funds to implement a number of changes to their governance arrangements which would impose additional administrative costs and other burdens on the funds.

Alternatives


Cross-bench and opposition senators think the bill goes too far. Senators John Madigan, Glenn Lazarus and Jacqui Lambie have suggested an alternative to imposing these changes by legislation, and instead propose an industry review of not-for-profit fund governance.

In addition, senators have also recommended the review consider how industry funds can increase their investment in Australia, thereby supporting the local economy and the growth of jobs.

The Australian Institute of Super Trustees (AIST) and Industry Super Australia (ISA) have agreed to undertake a comprehensive review of not-for-profit fund governance to propose a code of best practice.

With $700 billion of funds under management, these funds are significant in the Australian economy.
 
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