APRA on notice to explain super fund payments to unions

Mike Taylor

Managing Editor and Publisher

16 July 2024

At the same time as adverse reports swirl around the Construction Forestry Mining and Energy Union, the Australian Prudential Regulation Authority (APRA) has been placed on notice to answer questions relating to payments from superannuation funds to trade unions.

The questions, asked during the latest round of Senate Estimates, cover payments from multiple industry funds to trade unions.

The questions have been asked by NSW Liberal Senator, Andrew Bragg and relate to expenses data gathered from the annual members meeting notices of industry funds AustraianSuper, Cbus and First Super.

Bragg as referenced $566,000 paid by AustralianSuper to the Australian Metal Workers Union for an “alliance partnership and has asked APRA whether the regulator knows what that actually represents.

He also asked whether APRA could provide a similar explanation for $300,000 for a similar arrangements with the Australian Services Union and the United Workers Union.

“Then you have hundreds of thousands of so-called directors fees paid to these unions. Have you analysed them?” Bragg asked.

“CBUS said they paid over $300,000 to the Australian Workers Union (AWU) for ”promotion, marketing and sponsorship” purposes. Do you know whether those payments satisfied the best financial interest duty?”

“ $156,000 to the AWU, $700,000 to the CFMEU, $250,000 to the CEPU – mostly for ”sponsorship”. How are these payments in the best financial interest of super members?” Bragg asked in his question.

“It says here that FirstSuper, which is a small $4 billion fund, made numerous payments, including three payments of over $700,000 each to the CFMEU. This totals over $2 million. The alleged purpose is ”Co-ordinator Costs”.
“Do you know whether these ”co-ordinator costs” is for purposes of members best financial interest? This is huge expenditure. How could paying for this possibly be in the best financial interest of members?”