Shadow Minister for Financial Services Pat Conaghan has warned the Albanese Government against weakening the superannuation performance test, stating Australians’ retirement savings should never become a slush fund for pet projects.
“The Coalition introduced the performance test to call out dud funds and protect people’s savings,” Mr Conaghan said. “It’s lifted standards and helped ensure Australians retire with more, not less.”
The performance test was introduced by the Coalition in 2021 as part of its “Your Future, Your Super” reforms. It compares the net investment returns of super funds against a benchmark, holding them accountable for underperformance.
At last week’s Economic Reform Roundtable, some stakeholders – including union and industry fund representatives – called for the test to be reworked to make it easier for super funds to invest in housing, clean energy and other long-term projects. While the Treasurer has not yet launched a formal review of the test, he welcomed these calls and indicated the Government is open to change.
“We’re willing to discuss changes and will engage constructively if a review proceeds,” Mr Conaghan said. “But our position is clear: super is your money. It’s not a slush fund for the Treasurer’s latest pet project.”
Mr Conaghan said the push to amend the performance test to accommodate green investments often relies on unproven models and overly optimistic projections – with no guarantees for members.
“It’s possible these sectors will offer good long-run returns, but the case isn’t yet proven. It’s taking an unproven gamble with Australians retirement savings. That’s exactly why we put the performance test in place. Super should be guided by evidence – not ideology.”
He added that independent voices have raised similar concerns.
“Even the Grattan Institute has warned against watering down the test to suit political priorities. They’re right to say superannuation must remain focused on maximising members’ financial returns.”
The Coalition remains open to practical, targeted improvements but only if they genuinely benefit members.
“Super is your money. We’ll always stand up for that.”
ENDS
