The Australian Institute of Superannuation Trustees (AIST) says the government’s Your Future, Your Super legislation still has “fatal flaws” after it passed in the lower house on Thursday.
The draft legislation will now head to the Senate with an amendment to remove a provision that provides governments with the power to ban super fund investments, a keynote that drew wide criticism.
However, AIST chief executive Eva Scheerlinck said the removal of that particular provision does not address other “flawed” measures in the bill.
A key concern for AIST is there being no requirement either in the legislation or regulations for all super products to be tested or for a fund to have passed the test before a member can be stapled to it.
“The amendments to the bill don’t change the fact that this piece of legislation contains fatal flaws that will result in significant unintended member detriment,” Ms Scheerlinck said.
“This bill excludes more than one third of super savings from scrutiny and disclosure, and does not prevent members from being stapled to funds that have not been tested or have failed the test.”
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The government’s More Flexible Superannuation Bill passed through the Senate on Thursday with amendments put forward by One Nation. ...