The Greens and Senate crossbench have teamed up with the Coalition to hand the Albanese a major parliamentary defeat, disallowing its regulations watering down superannuation funds’ transparency.
The Greens joined the Senate revolt on Thursday, after warning earlier in the week it intended to help defeat Labor because the government backflipped on the unrelated issue of million-dollar fines for bankers.
Under new rules made by the financial services minister, Stephen Jones, super funds would have no longer been required to itemise information on donations, marketing and sponsorship expenditure before annual general meetings.
Labor claimed the move was designed to reduce duplication, but crossbench MPs and senators raised concerns the rules weakened transparency.
For months, Labor lobbied the Greens to stay the course and help block disallowance motions. In November, the Greens agreed in return for an alternative commitment to establish a centralised super transparency report instead of disclosures to members ahead of the AGM.
But on Tuesday the Greens treasury spokesperson, Nick McKim, announced an intention to help pass the disallowance moved by Senator Jacqui Lambie.
“Last year the minister [Jones] agreed to million-dollar fines for dodgy bankers” as part of the financial accountability regime legislation, he told Guardian Australia.
“But after a day of lobbying by the banks, the minister went back on his word.
“The minister needs to understand that there are consequences for breaking this agreement.”
“We’ve also given the minister six months to institute a meaningful super transparency regime. He hasn’t done so. We have his word that he’ll do so. But, as I’ve just outlined, that is not enough right now.”
On Thursday the Coalition, Greens, Lidia Thorpe, Jacqui Lambie Network and David Pocock combined in the Senate to disallow the regulation 42 votes to 21, with only Labor opposed.
The Liberal senator, Andrew Bragg, declared “the great super cover-up is over”.
“The Coalition introduced strong disclosure requirements for super funds to disclose all payments from super funds to unions and related parties,” he said.
“The disallowance means $30m of retirement savings each year will now be disclosed to workers in their annual statements.”
Lambie said “for a government that’s all about transparency, I don’t know why allowing super funds to hide donations and payments was high on their agenda”.
“One super fund spent $3m of your money on getting their logo on to a footy,” she said.
“Some of them are giving bonuses to their directors worth over $10m dollars. They’ve spent $24m of your money on a lobbying firm.”
Jones said “the only winner here is Australia Post” because super funds will have to mail their members ahead of the AGM.
“This motion won’t add a skerrick of transparency, but will add to red tape and costs that will be passed on to members.”
