Government Senators' Dissenting Comments

1.1This Coalition-led Senate Inquiry into Australia’s Retirement system has failed to make a single recommendation that would improve Australia’s retirement system or deliver improved retirement outcomes for Australians.

1.2The Inquiry has been conducted in a manner that represents a concerning politicisation and targeting of one fund-type in the superannuation sector, and of Australia’s broader financial services industry.

1.3Despite the broad terms of reference covering the development of retirement products, consumer outcomes, innovation opportunities and the impacts of climate change and insurance, the Chair has focused solely on undermining and discrediting Australia's successful profit-to-member and equal representation model of superannuation, in a political move that discounts the inquiry.

1.4The Australian superannuation sector is one of the largest and most successful retirement schemes in the world which is allowing people, particularly low-and moderate-income people, to retire with real wealth, security and dignity in retirement. For some, they are the first to do so in a generation.

1.5Disappointingly, the time and resources of the many willing inquiry participants who engaged in this Inquiry in good faith across its broad terms of references have been disregarded. Over the 19 months that that Inquiry was active, the Chair has held just 14.5 hours of public hearings – an effective total of just 2 days.

1.6The Final Report of this Inquiry makes overstated claims about the lack of willingness of inquiry participants to participate and answer questions, and concerning allegations about individuals’ and organisations’ intentions.

1.7Government Senators are of the view that inquiry participants have appropriately and fairly made themselves available to this committee and its Inquiry, and have answered questions and provided further evidence when requested.

1.8The Senate and the Australian Parliament has an extremely important role in scrutinising executive government, legislation and a broad range of matters of public importance.

1.9It is important that changes to Senate standing orders, practices, powers and conventions are formed from a place of meaningful and multipartisan goodwill, not from political interests and pursuits. Government Senators are therefore of the view that improvements and changes to Senate procedure are best dealt with in the business of the Senate Standing Committee on Procedure.

1.10Government Senators note that while the Coalition has pursued policy decisions to undermine the superannuation sector and Australian's retirement incomes, the superannuation system has been strengthened by the Albanese Labor Governments, including through:

Developing mandatory and enforceable service standards for all large APRA regulated superannuation funds.

Lifting the Coalition’s superannuation guarantee freeze of 9.5 per cent, with the guarantee finally due to reach 12 per cent on 1 July 2025 – 6 years later than it should have.

Paying 12 per cent superannuation on government-funded Paid Parental Leave payments for eligible parents for babies born or adopted on or after 1 July 2025.

Improving the Retirement Phase of Superannuation to give retirees more peace of mind, supporting them to make the best use of their retirement savings and income, and to navigate different retirement income option and products.

Legislating the Objective of Superannuation as 'to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way'.

Committing that, from 1 July 2026, employers will be required to pay their employees' superannuation at the same time as their pay, to support timely receipt of superannuation and improve retirement outcomes.

Strengthening and expanding the performance test to ensure members receive the best investment returns through accumulation.

Legislating a new financial accountability regime which will, among other things, require all superannuation funds to nominate accountable executives to be responsible for superannuation service standards.

Expanding transparency in super by aligning financial reporting requirements with public companies and supporting the regulators to expand transparency over fund expenditure.

Undertaking the largest reforms to financial advice laws in over a decade to allow funds to deliver better service to members throughout their member journey.

Senator the Hon Jess Walsh

Deputy Chair

Labor Senator for Victoria