2 Dec 2013

Less union influence in superannuation sought by new govt

7:36 am on 2 December 2013

Superannuation in Australia is shaping up as another public policy battle.

A couple of years ago, the then-Labor government proposed a shake-up of the $1.5 trillion superannuation industry by pushing for greater transparency, lower costs and improved default options for savers.

Radio New Zealand's Sydney correspondent reports the new government is floating more change. Specifically, it's seeking to reduce the influence of unions in super.

Currently, super funds are split between low-cost union-sponsored industry funds and big retail funds controlled by the banks.

The federal government has issued a discussion paper proposing greater independence for boards.

It also wants the agency that oversees pay deals to lose the power to select default funds for workers. In other words: more power to the banks and less for unions.