Outgoing Minister for Financial Services Stephen Jones rejected suggestions he had given ammo to super sector enemies in his polarising tenure, saying it’s possible to “love something” but criticise it at the same time.
Jones’ tenure as Minister for Financial Services and Assistant Treasurer will end at the next federal election after he announced an unexpected resignation from federal politics on Thursday citing personal reasons.
Prime Minister Anthony Albanese asked Jones to remain in the role until the election is determined, Investment Magazine can reveal, meaning he will be tasked with fending off an increasingly strident Coalition on super policy despite not contesting the election.
“You can love something but also be very aware of where it’s imperfect or not up to scratch,” Jones told the Investment Magazine Chair Forum, when asked if his very public criticism of funds for perceived poor member service standards simply gave the Dutton Opposition ammo to attack the principles of preservation.
“If you do have a deep passion, affection, love and pride for a system and desire to be as good and as strong as possible then far from shrinking from those issues you’ve got a duty in my view to say we can’t let this go. It has to be good as possible.”
Jones – along with the regulators – had piled on the funds for an underwhelming response to the Retirement Income Covenant despite also pushing for expanding the provision of financial advice via the Delivering Better Financial Outcomes reforms.
Along with Treasurer Jim Chalmers, the minister used the start of the new year to unveil a new set of member service standards for super funds, after the sector was battered by criticism of underperformance in the past year.
But the minister’s tenure oversaw Labor’s legislation that would enshrine the objective of superannuation and the controversial move to lower the tax concession for super fund member balances over $3 million.
Under his watch, Jones also oversaw legislation that saw super being provided during paid parental leave, the requirement for super to be paid on pay day.
From the top of the highlands
The retirement for the member for Whitlam, covering the Illawarra and southern highlands regions of NSW, comes less than a year after surviving a cabinet re-shuffle last year.
In a statement and speech presented on Thursday morning, Jones cited the National Broadband Network and the National Disability Insurance Scheme among the key policy achievements by Labor during his tenure.
“I am proud of the role I played in progressing marriage equality and gambling ad reform in my early years,” Jones said.
“I am also proud of the work we have done to secure the future of our steel industry, to rebuild TAFE and as Assistant Treasurer, fighting scams, protecting workers superannuation, making financial advice more accessible and affordable, and strengthening consumer protections for all Australians.”
Jones said he had the privilege to see the Illawarra and the Southern Highlands go “from strength to strength”.
“Growing up and living most of my life in this beautiful place I have seen many changes,” Jones said.
“We still mine coal and produce steel – but we are so much more. Our world class university educates and gives opportunity to thousands of locals every ear. New suburbs have emerged from farmland, but we have not lost our ability to produce great athletes, artists, minds, and citizens.
“This great community deserves a representative who will continue to fight for things that matter. A well funded TAFE system, a future for manufacturing, cheaper childcare, restoring Medicare, affordable housing, and better infrastructure for our growing suburbs.”
‘Taken the door off its hinges’
Treasurer Chalmers paid tribute to Jones, describing him as having “big ideas, makes big contributions and is a terrific colleague”.
“He will leave a proud legacy as Assistant Treasurer and Minister for Financial Services, having advanced reforms to strengthen Australia’s superannuation and financial systems, modernise markets and improve the integrity of our tax system,” Chalmers said.
“He has delivered reforms that will allow more Australians to retire with dignity, and has helped make financial advice more accessible. He played an important role finalising the response to the Banking Royal Commission, and has led critical work to combat scams, including the introduction of landmark legislation.”
The Association of Superannuation Funds Australia credited Jones for progressing several policies including increasing the super guarantee to 12 per cent, super being provided during paid parental leave, progress on pay day super, and the objective of superannuation into legislation.
“On a personal note, I have always found that not only has Minister Jones always had an open door for sector representatives – he has basically taken the door off its hinges,” ASFA chief executive Mary Delahunty said.
“This genuine commitment to conversation has been a hallmark of his approach and a great example for others.”
Super Consumers CEO Xavier O’Halloran commended the engagement by the minister with consumer groups.
“There is still work to be done, but the Assistant Treasurer has established a process to strengthen the super system and ensure millions of Australians are treated fairly and respectfully when dealing with their super,” O’Halloran said.