INDUSTRY Super Australia (ISA) has welcomed the Federal Government’s commitment to implementing the recommendations of the Hayne Royal Commission.

ISA chief executive Bernie Dean said the government’s implementation roadmap set out an ambitious legislative timetable that should deliver important protections for consumers, including the requirement that ongoing fee arrangements must be renewed annually, introduction of a new disciplinary system for financial advisers, and bans on hawking of super products.

"ISA is a strong advocate for legislative reform that is in the best interest of members and whilst quick implementation is to be commended, it should not compromise the interests of members," Mr Dean said.

"While the recommendation relating to stapling will be dealt with as part of the Government’s response to the Productivity Commission, ISA will continue to work with Government as they determine their response to this important recommendation.

"Industry super funds preferred model is to automatically combine a worker's super each time they change jobs into a single quality checked account," he said.

An independent cost-benefit analysis of ISA’s model by KPMG found it would deliver up to $416 billion in performance dividends to members and eliminate multiple accounts, with consumers standing to benefit from close to $200,000 more in super over their working life.

"This is in comparison to the ‘fund-for-life’ model which could see workers stuck in a single underperforming fund for life," Mr Dean said.

Separately, ISA is urging the Federal Government not to lose sight of the other key reform priorities in the superannuation sector.

"Both the Royal Commission and Productivity Commission made it clear that underperformance is the single most costly drag on the system, costing consumers hundreds of thousands of dollars in retirement savings," Mr Dean said.

"Dealing with this chronic underperformance must remain the government’s top priority when it comes to superannuation, along with the elimination of multiple accounts and stopping the scourge of unpaid super," Mr Dean said.

“The Royal Commission did a very good job of identifying where the problems and misconduct were – now the government must get on and fix them," he said.

“We welcome the government’s commitment and the ambitious reform program they have set out and we stand ready to work with them as they implement these important protections for consumers.

“While this important work is underway, we urge the government not to lose sight of the other challenges such as chronic underperformance and the fact that one in three workers are not even getting paid super," Mr Dean said.

www.industrysuper.com

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A RECORD NUMBER of mining industry representatives will spend four days working on one focus - the well-being of every man and woman in the mining sector at the Queensland Mining Industry Health and Safety Conference on the Gold Coast.

Queensland Resources Council chief executive Ian Macfarlane said more than 900 people will attend the conference starting on Sunday (August 18) which was the largest cohort in the conference’s 31-year history.

“It has been overwhelming to see the response from industry to the conference this year after the tragic death of six mine and quarry workers,” Mr Macfarlane said.

“I’ll be sitting down with Mines Minister Dr Anthony Lynham and union representatives to ensure the safety of all workers remains the number one priority. Everyone who works in a mine – or any other workplace for that matter – is entitled to leave for work and return home safely to their loved ones.

“Already industry is rolling out comprehensive safety resets across mine sites including two-way conversations with workers and safety professionals to remind them of the dangers faced on a site.”

The conference theme this year is ‘Working to the Future’ with a goal of making sure all delegates learn a new technique or approach to health and safety.  

Delegates will hear from Russell Whit, managing director of Driver Safety Australia, Brant North who survived a mine accident and has represented Australia at the Paralympics, advocate for countering violent extremism Gill Hicks and big wave surfer and Red Bull Athlete Mark Matthews.

Conference chair and CFMEU’s safety representative Greg Dalliston said the annual conference was a key event on the mining calendar.

“The conference brings together unions, industry and the Government and encourages all parties to work together and share ideas about new safety measures and health techniques,” Mr Dalliston said.

Sponsors of the conference, to be held at The Star, include principal sponsor Anglo American, Glencore, Yancoal, Uvex, Peabody and the CFMEU.

For a full list of conference speakers and the program click herehttps://www.qrc.org.au/wp-content/uploads/2019/08/QMIHSC-2019-program-V-10.pdf

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THE ARC Centre of Excellence in Population Ageing Research (CEPAR) has released an industry report that investigates the impact of retirement income projections on superannuation contributions, investment choices and engagement from members.

“Australian workers rely on information from their superannuation funds to understand whether they are saving enough for retirement,” said lead author George Smyrnis, CEPAR PhD candidate at the University of Sydney.

“Research shows that the overwhelming tendency to focus more on the present than the future, along with difficulties people have making forecasts that require compounding, make it likely that superannuation fund members will have poorly formed expectations of their retirement wealth,” he said.

Conscious of this evidence, superannuation funds, including the Construction and Building Unions Superannuation (Cbus) fund, have begun to show members projected retirement wealth, so-called retirement income estimates (RIE).

The CEPAR research team, comprising George Smyrnis and Professor Susan Thorp from the University of Sydney, and Professor Hazel Bateman, A/Professor Isabella Dobrescu and Professor Benjamin Newell from UNSW Sydney, set out to understand the impact of this change by analysing the data from a trial in 2013, when Cbus sent around 20,000 members an RIE, along with their current balance, for the first time.

George Smyrnis said that the impact of this new message on members’ contributions, engagement, and investment choices was remarkable.

“Our analysis shows the RIE motivated additional savings, raised member investment choices, and raised engagement with the super fund,” he said.

“Overall, the presentation of the RIE encouraged higher rates of salary sacrifice saving, and higher average amounts of salary sacrifice and voluntary contributions, as well as changes in investment options, compared to those who did not receive the RIE.

“The presentation of the RIE also encouraged higher rates of engagement between members and the super fund, particularly for advice, and for admin and processes related interactions. These results are important evidence that superannuation member disengagement can be partly improved by clearer communication,” Mr Smyrnis said.

“The results we found confirm that, for many superannuation members, the retirement income estimate is an important tool for understanding savings adequacy. This motivates super fund members to make adjustments that can substantially change their retirement outcomes.”

The industry report is available online at cepar.edu.au/publications/reports.

Details: George Smyrnis; Hazel Bateman; Isabella Dobrescu; Benjamin Newell; Susan Thorp (2019): The impact of projections on superannuation contributions, investment choices and engagement. CEPAR Industry Report 2019/1.

About CEPAR

The Australian Research Council Centre of Excellence in Population Ageing Research (CEPAR) is a unique collaboration between academia, government and industry, committed to delivering solutions to one of the major economic and social challenges of the 21st century. The research centre is based at the University of New South Wales, with nodes at the Australian National University, Curtin University, the University of Melbourne and the University of Sydney.
cepar.edu.au

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A DELEGATION of senior Papua New Guinean ministers, including the country’s Treasurer, Foreign Minister and Minister for Commerce and Industry, will visit Sydney next Monday to attend the 2019 Business Advantage Papua New Guinea Investment Conference.

The powerful delegation will attend the event, at Sydney’s Shangri-La Hotel, to meet with the investment community and outline the new business and investment policies of the country’s new government, led by Prime Minister James Marape, which was installed in late May.

Ministers expected to attend include Commerce Minister Wera Mori (who will formally represent Prime Minister Marape), Minister for Treasury Sam Basil, Foreign Minister Minister Soroi Eoe and Minister of Works Michael Nali.

The ministers will lead a large contingent of over 120 Papua New Guinean business leaders and government officials, to meet with business people and investors from Australia, the United States, New Zealand and the Pacific.

The conference program, which starts Monday morning, will cover all sectors of PNG’s economy, from mining and petroleum, to agriculture, infrastructure, manufacturing, finance, services, energy and technology. It will include investment case studies and feature participation from event partners such as the World Bank, Asian Development Bank, KPMG and the International Finance Corporation.

Papua New Guinea, Australia’s nearest neighbour, became an exporter of liquefied natural gas (LNG) in 2014 and is on the cusp of green-lighting two major new resources projects, the US10 billion Papua LNG project (in which ASX-listed Oil Search Limited is a partner) and the US$9 billion Wafi-Golpu copper-gold project, led by ASX-listed Newcrest Mining.

In addition, the country is undergoing a massive investment in infrastructure, with a US$2 billion rural electrification project and undersea cable internet being part-funded by Australia. In addition, the conference will hear about opportunities in new road, port and aviation infrastructure. 

The World Bank predicts PNG’s GDP will grow by 5.6 percent this year - twice the rate of Australia’s GDP growth. It is projected to double its population by 2050 to approximately 20 million.

"This is the only Papua New Guinea-focused business event in Australia this year and it represents a unique opportunity to get acquainted with PNG’s new government,’ said Andrew Wilkins of event organiser Business Advantage International.

"We are expecting to welcome plenty of Australian businesses to the event."

The Business Advantage Papua New Guinea Investment Conference will take place on 19 and 20 August at the Shangri-La Hotel, Sydney.

pnginvestmentconference.com