Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, a few weeks ago APRA ordered Cbus and BUSSQ super to review their governance arrangements, given recent allegations of serious misconduct within the CFMEU, which is a shareholder of both Cbus's trustee, United Super, and BUSSQ. Minister, does the government think it's appropriate for the CFMEU to remain a shareholder in superannuation entities controlling over $100 billion in members' savings?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Bragg for the question. As Senator Bragg's question indicated, this matter is under consideration by APRA, which is the regulator of superannuation in this country. Mechanisms are in place for the regulator to manage and investigate those matters, and, if they think there is anything that they need to respond to, I'm sure that they will. But I think Senator Bragg's war on super—

That's what this is about. He's obsessed with it. He's obsessed with his war on super and undermining—

Opposition senators interjecting—

He can dress it up anyway he likes. He is well aware that APRA is looking into any matters. I'm sure they're engaging closely with Cbus as they investigate these matters. But he's using that as a shield to continue to undermine compulsory super in this country. That's what he's doing. He does it at every single opportunity. And, if it's industry super he can attack, then he'll go after them. Industry super in this country plays an important role in managing and enhancing millions of Australians' retirement incomes to ensure that they are able to retire with dignity and that the hard work that they do through their working lives is rewarded through the superannuation system.

We have a regulatory system here that manages and regulates the superannuation industry. They've already indicated that they are working with Cbus and having a look at some the concerns that have been raised, and I would encourage Senator Bragg to allow them to do their job. And I have no doubt that he will be speaking to or questioning APRA at estimates on this very subject.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Bragg, first supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

Time will tell. On 29 August the CFMEU administrator, Mark Irving KC, forced all three of the CFMEU appointed trustees off the Cbus board. CFMEU appointed directors still make up half the eight-member BUSSQ board, and BUSSQ recently launched a federal court challenge to APRA's request that they conduct a review of their own arrangements, describing the licensee conditions as unreasonable. Will the government take action so that fund members can be better served by more independent directors on super fund boards rather than them being controlled by unions; and, if not, why not?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The Albanese government expects all superannuation funds to act in the financial interest of their members. There have been long debates about governance of superannuation funds in this country, and that's why we have APRA here—to ensure that the responsibility for the best interests of members is met by superannuation funds.

On this side of the chamber, we acknowledge the valuable role that unions have played in establishing, advocating for and arguing for superannuation in this country, and we believe they have a right to sit at the table, in the interests of their members and the funds that those funds administer on their members' behalf. Senator Bragg, again, your war on superannuation is all that seems to drive you in this chamber, but it is a significant financial asset for millions of Australian workers in this country. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Bragg, a second supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

Last Friday APRA took legal action against First Super co-chair and CFMEU official Michael O'Connor, alleging he breached his director duties by using member savings to bankroll a union official's salary. According to 2022-23 disclosures, First Super gave $2.5 million to the CFMEU. What is the government 's plan to ensure such misappropriation of funds is not systemic?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We expect the regulator to do the job that they are charged with doing. They need to ensure that superannuation funds meet the highest standards of governance and act in the best interests of their members, and the independent regulator has the mandate to uphold these standards. Your question, and the fact that you have referred to APRA, shows that we have the system in place to manage concerns and, if complaints or cases are raised, then APRA should respond to them. That's the system that this parliament has put in place. APRA, I think, has a very strong reputation in enforcing and upholding those standards, and I have no doubt they will continue to do so.