THE Financial Services Council (FSC) is initiating a process to consult with the superannuation and life insurance sectors, consumer advocates and other stakeholders with the aim of removing exclusions based on occupational classification within default group life insurance policies in MySuper.

The Federal Government’s ‘Your Future, Your Super’ reforms introduced an important consumer protection to ‘staple’ superannuation members to their fund, so that they take their account with them from job to job.

Stapling was a recommendation of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and the Productivity Commission’s report into the efficiency and competitiveness of the superannuation system. The FSC strongly supported the implementation of stapling as it would prevent the creation of duplicate accounts that cause the erosion of superannuation savings.

In a small number of instances, however, superannuation members can be stapled to a MySuper fund that has default group life insurance that contains exclusions based on occupational classification. In a small number of instances when an employee moves between occupational classifications, at time of claim they may find themselves unable to claim against their default insurance coverage in the MySuper product.

This concern was raised by stakeholders during parliamentary debate and the FSC and life insurance industry agreed that it was in the best interests of consumers to design a solution, now that stapling is legislated to take effect from November 1, 2021.

As part of this process the FSC is seeking feedback on the options outlined in the consultation paper to implement this solution. The FSC said it would also consult with the Australian Competition and Consumer Commission (ACCC), Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).

The FSC today issued a policy proposal that the life insurance and superannuation industries could implement to address this issue. Stakeholders are being encouraged to provide feedback by Friday, September 3, through This email address is being protected from spambots. You need JavaScript enabled to view it..

The policy proposed is at: https://fsc.org.au/resources/2242-fsc-occupational-exclusions-consultation-paper/file

ends

THE Trade and Investment Growth Committee is holding a fourth public hearing this Friday for its inquiry into the prudential regulation of investment in Australia’s export industries.

In previous hearings, the committee has heard from representatives of export industries, financial institutions and shareholder groups. The Committee Chair, George Christensen MP, said the committee was looking forward to discussing that evidence with Australia’s financial regulators and government agencies.

"Prudential advice plays an important part in ensuring a healthy and well-functioning financial system. In light of this, the committee is looking forward to hearing about how the Government and regulatory agencies can further support and enable investment in Australia’s export industries, which are so vital to Australia’s economy, particularly in regional areas," Mr Christensen said.

Witnesses include the Australian Prudential Regulation Authority, Reserve Bank of Australia, Australian Securities and Investments Commission and Export Finance Australia.

Public hearing details

Date: Friday, 13 August 2021
Time: 9am – 1.20pm

Due to the public hearing being held by teleconference, public access will be available via the live broadcast at aph.gov.au/live.

Further information about the committee’s inquiry, including the hearing program, is available on the committee’s webpage.

ends

AN INQUIRY to investigate and analyse the current use of credit cards and digital wallets to fund online gambling will be held in Canberra on Friday August 13, 2021.

The Parliamentary Joint Committee on Corporations and Financial Services will examine current online gambling behaviours of Australians and whether the use of credit cards and digital wallets is emerging as an area that needs additional scrutiny and possible regulatory or other forms of intervention.

Committee Chair, Andrew Wallace MP, welcomed the announcement of this Inquiry as a means to enable discussion on the current trends in online gambling and whether we are seeing an increase in Australians relying on credit to fund their gambling activity.

“It is important that this Inquiry firstly, has some insight into the prevalence of online gambling in Australia and what emerging behaviours we are seeing in our communities, particularly as many parts of the country are suffering from repeated lockdowns during the COVID pandemic," Mr Wallace said. "We can then begin to analyse the true extent of the issues and explore options for how industry, financial institutions and government, can implement changes to protect Australians from gambling with borrowed money.

“I am keen to hear from the banking sector, who will be represented by the Australian Banking Association (ABA) on the measures they have introduced to empower those Australians concerned at their personal gambling behaviours, to set up limits and website blocks when they feel their gambling is getting out of control,” Mr Wallace said.

This Inquiry will also consider the efficacy and appetite for a mandatory code in the online gambling industry and/or whether there is support for regulatory intervention, possibly via amendments to the Interactive Gambling Act 2001.

“I have made my personal views on gambling with credit cards known many times in my five years as a Member of Parliament. I have consistently stated that if you can’t use a credit card to support gambling in ‘real world’ casinos, clubs and at the track, I don’t believe we should allow it online.

“I am not advocating for a blanket ban on gambling.  If people want to lose their own money, provided they can feed their families and pay their bills, that is a matter for them. 

"What I believe should concern all Australians is when people borrow to fund their gambling habit, exacerbating the social harms that are perpetrated on not just them, but their innocent families as well.  Ultimately, the use of credit to gamble online has cost consequences on families, society, charities and governments who often have to pick up the tab when the 'house' ultimately wins.

“It’s important that the committee closely examines the harms caused by the use of credit cards and digital wallets for online gambling, which remains the only forum legally open to Australians.  It also important the committee makes appropriate recommendations to government as to what actions it should take to remediate those harms.

"The committee would have preferred to include the Big Four Banks, who continue to make considerable profits from credit card interest, in the evidence gathering for this inquiry. However, disappointingly, each of the Big Four Banks have declined to appear before the committee, despite repeated requests, citing competition constraint concerns.” Mr Wallace said.

THE Australian Government should urgently implement a nationally-consistent best-practice plan for crew changes on international trading vessels following the preventable death of a seafarer during a high-risk transfer off Queensland’s Sunshine Coast this week, claims the International Transport Workers' Federation (ITF).

According tot he ITF, the man died after reportedly falling from a ladder being used to transfer seafarers between the Liberian-flagged bulk carrier Formosabulk Cement and a small vessel. As the incident occurred in Australian territorial waters, about five nautical miles off Mooloolaba, the vessel has been detained by the Australian Maritime Safety Authority to allow an investigation into the death to occur.

The ITF said the "lack of a nationally-consistent policy on international seafarer crew changes, along with restrictive state-based health orders, appeared to be the reason the high-risk offshore transfer was undertaken rather than occurring in port".

“Currently, Queensland is one of the only states in Australia facilitating crew changes on international vessels — which in many cases have seafarers that have been effectively trapped onboard for more than a year due to the COVID crisis,” ITF Australia coordinator Ian Bray said.

“The Formosabulk Cement was reportedly sailing to a NSW port, where a crew change could have safely occurred at the berth, but because of that state’s restrictive health orders it appears the vessel operator instead decided to replace the crew while sailing down the Queensland coast.

“After spending the last year at sea, this seafarer was looking forward to finally returning home to his family, but instead they have received the tragic news that he died during the crew change," Mr Bray said. “Our deepest sympathies are with his family, friends, and fellow crew members.

“It is essential that the Australian Government learn from this completely preventable death and take the urgent steps needed to address the crew change crisis that caused it.

“Australia is failing to live up to its legal obligations as a signatory to the Maritime Labour Convention, which outlines the nation’s responsibility to the health and welfare of the seafarers that keep the nation’s supply chains moving.

“State and Federal Government’s are complicit in any fatalities that occur because crew changes are being undertaken in an unsafe manner due to their prescribed health orders," Mr Bray said.

“The Australian Government needs to urgently address this issue, working with State and Territory Governments to put in place a nationally-consistent, best-practice crew change policy that allows the safe transfer of crew members while vessels are in port.

“The current situation is seeing risky off-shore transfers take place, while some vessels are diverting to Queensland ports because it is the only Australian state with a comprehensive approach to crew changes.”

About the ITF and ITF Inspectorate

The International Transport Workers' Federation is a democratic global union federation of 670 transport workers trade unions representing over 20 million workers in 140 countries. The ITF works to improve the lives of transport workers globally, encouraging and organising international solidarity among its network of affiliates. The ITF represents the interests of transport workers' unions in bodies that take decisions affecting jobs, employment conditions or safety in the transport industry.

The ITF Inspectorate is a network of 147 inspectors and contacts, based in ports all over the world, whose job is to inspect ships calling in their ports to ensure the seafarers have decent pay, working conditions and living conditions on board. They conduct routine inspections and also visit ships on request of the crew. If necessary they assist with actions to protect seafarers' rights as permitted by law.

ends