ASIC's prosecution of Cbus Super for failing to put members' interests first highlights the urgent need for better governance over the trillions of dollars Australians have in retirement savings.

Shadow Treasurer Angus Tayor said the allegations from ASIC are serious and demonstrate a lack of concern for Australians to access their money in times of need. 

“This is a critical failure from an industry which regularly lobbies to put more restrictions on how Australians can access their own retirement savings,” Mr Taylor said.  

“Superannuation is Australians money, not the fund managers, not the unions and not the governments. 

“Given the prosecutions are now coming from both regulators, Labor has serious questions to answer about why it’s failing to take further action to secure Australians retirement savings.

“The government must reveal what action it plans to take to ensure this behaviour is not systemic.”

Shadow Assistant Treasurer Luke Howarth said that rather than focusing on these issues, Assistant Treasurer Stephen Jones’ first action in government was to attempt to roll back super fund disclosure rules which would have left consumers in the dark about super fund donations, marketing and sponsorship expenditure.

“Labor’s approach to super has since followed a theme of protecting their union affiliated, industry super funds and donors with ideologically driven reforms,” Mr Howarth said.

“The Albanese Government has an opportunity to show it is serious about cracking down on the unions by supporting Peter Dutton’s legislation to re-establish the ABCC and to ensure those with criminal records are permanently removed from construction sites.

“Labor cannot continue to turn a blind eye to union lawlessness by some of their biggest donors.”

This is just the latest of a litany of governance scandals affecting industry super funds in recent months, including allegations of directors using their board positions to direct contracts to their own union and expenses data showing super funds directed almost $4 million in payments to the militant CFMEU in 2023 alone. 

These latest allegations highlight the need for the government to retain the Coalition’s Your Future, Your Super reforms that delivered for Australians and strengthened safeguards for Australia’s $3.7 trillion in retirement savings. Any changes to these reforms would require substantial improvements in superannuation governance.

ENDS.