UNION and employer groups have backed an ambitious overhaul of the superannuation system that could increase savings for millions of workers by putting more pressure on funds to lift their performance.
The ACTU and the Australian Industry Group endorsed the approach yesterday, adding momentum to proposals that could exclude poor-performing funds from the system that sets the default savings for about 1.7 million workers under industrial awards.
The reform plan is being resisted by some funds and unions that question whether a super fund’s past returns can be used to predict its future performance.
The emerging proposals set the scene for a policy tussle when Financial Services Minister Bill Shorten considers the recommendations of a Productivity Commission inquiry currently taking public submissions.
The Australian revealed yesterday that Industry Super Network, which represents industry funds holding about $250 billion, was proposing a sweeping change to choose default funds by their performance.