Bill Shorten’s changes to superannuation do not go far enough in delivering to Australians a transparent, conflict-free retirement system, says the Opposition’s Spokesman for Superannuation Senator Mathias Cormann.

Under the Labor Government, Australia’s Fair Work Act has what is the appropriate default superannuation fund under an Award.

“But this protects Bill Shorten’s friends in the super industry,” says Cormann. “The current process is not open, transparent or competitive, as was recognised by the Labor Government before the last election.”

Cormann says Jeremy Cooper’s review of the $1.4 trillion superannuation industry called for independent directors – something Shorten has ignored, Cormann says.

“If independent directors sit on the industry super boards then it helps protect members,” says Cormann. “When directors want to sit on multiple superannuation boards, conflicts of interest can arise and must be properly managed.”

2 comments on “Mathias Cormann says Shorten reforms fail transparency, conflict tests”
  1. I tend to agree with Cormann’s views concerning the multiple directorships. There is absolutely no jusitification for a director sitting on more than one industry fund board. If its about protection of directors fees, then clearly the focus if off the members from the start. It is a slap in the face of the talent that already works in this sector and smacks of arrogance and greed. If Directors seriously believe there is such a shortage of talent, they should get off their lounge and start looking!!!

    I would also think that Director Related Party Disclosures should highlight any multiple directorships to allow APRA to inquire as to how they turn their mind off when they leave one fund’s board and go to quite possibly a competitors board and forget the strategy of the first board.

  2. I tend to agree with Cormann’s views concerning the multiple directorships. There is absolutely no jusitification for a director sitting on more than one industry fund board. If its about protection of directors fees, then clearly the focus if off the members from the start. It is a slap in the face of the talent that already works in this sector and smacks of arrogance and greed. If Directors seriously believe there is such a shortage of talent, they should get off their lounge and start looking!!!

    I would also think that Director Related Party Disclosures should highlight any multiple directorships to allow APRA to inquire as to how they turn their mind off when they leave one fund’s board and go to quite possibly a competitors board and forget the strategy of the first board.

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