The Royal Commission into Trade Union Governance and Corruption has recommended a significant expansion of choice of super fund for employees, going further than its own draft report.
The final report of the Royal Commission into Trade Union Governance and Corruption (TURC) was released late in December, containing 79 recommendations. These include a recommendation that:
Sections 32C(6), (6A), (6B), (7) and (8) of the Superannuation Guarantee (Administration) Act 1992 (Cth) be repealed, and all other necessary amendments be adopted to ensure all employees have freedom of choice of superannuation fund.
These sections mean that a superannuation contribution made in accordance with workplace agreements can be deemed to comply with the super choice rules – restricting the ability of employees to choose which fund receives their super contributions. The draft TURC report only suggested repealing two sub-sections of s32C – those relating to ‘collective agreement’ and ‘enterprise agreement’.
The Financial System Inquiry had likewise recommended that choice of super fund be expanded, a recommendation the Government supports.
“The Government agrees to extend the choice of fund arrangements to more employees by removing the deemed choice for certain enterprise agreements and workplace determinations,” said the Government response to the final FSI report.
The TURC report also recommends:
A new civil remedy provision be added to the Fair Work Act 2009 (Cth) prohibiting a person from organising or taking (or threatening to organise or take) any action, other than protected industrial action, with intent to coerce an employer to pay amounts to a particular employee benefit fund, superannuation fund or employee insurance scheme.
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