Nicola Roxon to head new industry super lobby group as Labor finalises details of increased advice roles

The two lobby groups representing Australia’s $1.4 trillion industry superannuation funds have merged just as their Labor allies in the Federal Government finalise major advice changes. Industry Super Australia and the Australian Institute of Superannuation Trustees have joined to form the Super Members Council of Australia. The eight foundation members — and those expected to continue to wield the most clout — are the giant AustralianSuper, Australian Retirement Trust, UniSuper, Cbus, HESTA, Hostplus, Rest Super and Aware Super. HESTA chair and former Federal Labor frontbencher Nicola Roxon will be the interim chair of the fund. It comes as the Federal Government works on the fine detail of plans to entrust superannuation funds with scope to collective charge members for financial advice. It is also working on related proposals to cut the red tape in providing financial advice as part of attempts to solve a crisis over a lack of affordability of advice to most Australians. The number of registered advisers has fallen by more than 40 per cent since 2019. The previous Labor government’s reforms aimed at improving adviser education and standards drove people out of the industry and made it less attractive for prospective entrants. Industry Super and the Australian Institute of Superannuation Trustees have pushed for the retention of high consumer protection standards in any advice mandates that funds are given under the current round of reforms. Ms Roxon said the new lobby group would advocate for the interest of the industry funds’ 10 million members “to ensure superannuation policy is stable, effective and equitable”. “The nature of work and the workforce itself are changing, as are patterns and expectations in retirement,” the former attorney-general said. “As many members’ balances grow, those in lower paid or less secure work risk being left behind.” The Federal Government is expected to release details of its widened super mandate and cuts to advice red tape by the end of next month.

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Nicola Roxon to head new industry super lobby group as Labor finalises details of increased advice roles