THE Financial Services Council (FSC) today welcomed the passage of the Treasury Laws Amendment (Your Superannuation Your Choice) Bill 2019, which gives every employee the right to choose their own superannuation fund.

CEO Sally Loane said the FSC has strongly advocated for removing restrictions on choice in superannuation as there is no justification for preventing Australians from choosing a superannuation fund.

“This legislation finally ends the anachronistic practice of enterprise agreements locking workers into a specific fund and is a solid win for up to a million consumers who previously didn’t have the freedom to manage their retirement savings as they wish,” Ms Loane said.

“Many workers have been forced to choose between moving their superannuation into their employer’s specified fund or paying duplicate fees to keep multiple accounts open when they start a new job with an employer who does not offer choice – neither of which is a good consumer outcome.

“Ensuring that every Australian can choose their own superannuation fund is an important step in the modernisation and reform of the superannuation system to ensure it delivers good outcomes for all workers.

“The FSC also recognises and supports the sensible contribution to the debate by the independent Senator Rex Patrick, who amended the Bill to require the prudential regulator to review the impact of the amendments in due course and report to the Government.”

The Productivity Commission (PC) has found that an individual with two accounts over the course of their working life could be six percent worse off at retirement as a result of duplicate fees and insurance premiums. The PC also found that there were 10 million 'zombie' superannuation accounts costing Australians $2.6 billion every year in excess fees and insurance costs.

About the Financial Services Council
The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world.

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THE AUSTRALIAN Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Victorian Government’s ‘Click for Vic’ initiative, and is encouraging consumers to carefully consider where their spending is going.

“This is a great initiative by the Victorian Government, and a timely reminder that it has never been more important to spend locally,” Ms Carnell said.

“I know things are difficult across the board for a lot of people at the moment, and many don’t have a lot of spare cash to spend.

“But it is really important that we think carefully about where the money we do spend is going.  What might seem like a small amount can make all the difference to a small business deciding whether to open tomorrow, or just making sure they can pay their bills.”

Recent analysis by Deloitte Access Economics suggests that as much as 10 percent of Australian small businesses may be forced to close when a number of supports cease at the end of September.

“The Deloitte numbers are really sobering, and should be seen as a wake-up call about what we stand to lose,” Ms Carnell said.

“The federal and state governments have provided unprecedented support to businesses, but there’s no doubt that more can be done, and the communities that rely on and enjoy these businesses need to do what they can to ensure their businesses survive."

Ms Carnell has reiterated calls for Government to mandate payment times to small business in the wake of large businesses pushing payments to small business out to as much as 180 days.

“I continue to be disappointed in large businesses extending payment times to small business through this period,” Ms Carnell said.

“I have made it clear previously that mandating payment times to small business is the only way to fix this problem, and there has never been a more important time for Government to ensure small businesses get paid on time."

www.asbfeo.gov.au

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THE House of Representatives Standing Committee on the Environment and Energy is holding the opening public hearings this week for its inquiry into the problem of feral and domestic cats in Australia.  

Committee Chair Ted O’Brien MP said, "The Committee looks forward to hearing about how governments, scientists and community groups across Australia understand and manage the impact that cats have on native species and the environment.”  

On Wednesday, Australia’s Threatened Species Commissioner, Dr Sally Box, along with other representatives of the Department of Agriculture, Water and the Environment will appear before the Committee to discuss Australia’s framework for managing predation by feral cats on native wildlife and habitats.

The hearing will also consider the role of the Australian Government in bringing together key stakeholders across the nation to manage the impact of feral and domestic cats.

On Friday, the Committee’s second public hearing will hear from a range of groups about approaches to the problem including innovation, science and natural resource management. Detailed programs for both public hearings are available on the Committee’s website.

For the information of those wishing to listen to the public hearings, proceedings will be available on the Parliament’s website at aph.gov.au/live. Due to the COVID-19 pandemic, committee hearings are not presently open for physical attendance by members of the public.

Public hearing details 

Date: Wednesday 26 August 2020
Time: 10.15am to 11am
Location: Via teleconference

Date: Friday 28 August 2020
Time: 9am to 2.30pm
Location: Via teleconference

Interested members of the public may wish to track the committee via its website.

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A PARLIAMENTARY inquiry into the impact of COVID-19 on Australia’s defence, trade and international relations will hear from the Department of Finance.  

Senator David Fawcett, Chair of the Parliament’s Foreign Affairs, Defence and Trade Committee, said Australia’s government procurement policies—overseen by the Department—could be a barrier to the survival of capability in some industry sectors that have invested heavily to help carry the nation through the worst of supply chain disruption brought about by the pandemic.

Generating and sustaining industry capabilities that are important to Australia’s sovereign national interest must be recognised as a factor in evaluating value for money if Government procurement is to be a strategic part of Australia’s recovery from the COVID-19 pandemic 

Senator Fawcett said, “In addition to the human cost of the pandemic, Australia has experienced supply chain disruptions and economic instability. Smart government procurement which contributes to the development of sovereign capability and builds economic resilience could be an important part of Australia’s recovery from the pandemic.”

Full terms of reference for the inquiry are on the Committee website.

Public hearing details

Date: Tuesday 25 August
Time: 4.30pm – 5.30pm AEST 
Location: By teleconference

The hearings will be audio streamed live at aph.gov.au/live.

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