$50 billion in member retirement savings, drawn by industry superfunds

Those who claim to represent workers have done the opposite: their members have lost billions to their greed.

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More than a decade ago, the Council of Small Business Organizations of Australia suggested it would benefit all concerned to change the pension collection process.

That idea was rejected by the industry’s pension funds, and as a result, between $42 billion and $72 billion in pension funds have been lost to the members of those funds. The fear of competition from vested interests created this situation.

The original idea was to include an employee’s pension payments in the PAYG payments made by employers to the Australian tax authorities. In effect, it meant that employers did not have to pay pensions separately. The employer would have made one payment to the ATO rather than separate payments to the ATO and pension funds.

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