COSBOA welcomes the announcement by Assistant Treasurer Josh Frydenberg for the tightening of governance for the superannuation industry, stomach no rx in particular for industry superannuation funds.
Peter Strong, ailment CEO of COSBOA, prescription stated today “for too long unnecessary and costly administration has been forced onto small businesses by the inefficient and lazy industry superannuation funds that includes REST, HESTA, HOSTPLUS and others. These funds have not given any thought to the workload and confusion they create for small employers.”
COSBOA has been calling for better governance of superannuation funds for many years. The fact that the directors of the industry superannuation funds have been selected on whether they work for a union or a large industry association has ensured that the best available board skills are not sourced. The changes announced today will guarantee that at least a third of directors are independent and the Chairman is also an independent Director.
Peter Strong added “the current directors of these funds must be honest and hard-working people but are they the best available people to manage billion dollar financial institutions? The fact that the directors are, in the great majority, from a union or an industry association creates question marks around whether the best model of governance is in place. This change from the Assistant Treasurer creates better governance, better transparency and an opportunity for the boards to consider their approach to collecting funds and dealing with people in the supply chain.”
Peter Strong also added “we believe businesses should be taken out of the collection process altogether and that superannuation payments be included with PAYG payments to the tax office, but until then we are confident that the introduction of independent Directors and Chairmen will create better administration and less stress for small business people.”
See the announcement from Assistant Treasurer Josh Frydenberg HERE