Compromise preserves protections for at-risk young workers
15 February 2019
Last night's deal in the Senate to pass the Government's Protecting Your Super legislation preserves important protections for young workers in hazardous environments, says David Atkin, CEO of Cbus, Australia’s leading building and construction industry superfund.
“This compromise deal which saw the passage of the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 in the Senate last night means young workers will retain the critical insurance protection that they and their families rely upon in times of great need,” said Mr Atkin.
"Cbus has always supported measures in the bills to consolidate multiple accounts and keep costs down for super fund members.”
“However, as the leading super fund for workers in the building and construction industry we have always been concerned that the original version of the legislation would have removed insurance protection for young workers in hazardous industries.”
“Due to the hazardous and physically demanding working environment of the building and construction industry, Cbus’ membership need, rely on and importantly successfully claim against our default cover.”
“Cbus has accepted on average a death claim every 1.5 weeks in respect to young members and 2.6 death claims a week for members with balances under $6,000.”
“Last night’s compromise, which preserved default insurance for members under 25 years of age and those with account balances less than $6,000, means that young workers will retain these important protections.”
“Cbus acknowledges that parliamentarians heard and understood the potential impact on workers in hazardous environments posed by the original Protecting Your Super.”
“While we welcome the changes to the legislation, Cbus shares the concerns raised that the implementation timelines for the new rules are unfeasibly short. While we have done significant work to prepare for possible changes, significant risk and cost will be borne by fund members if changes as significant as these are required to be implemented in just a few months.”
For media enquiries please contact: media@cbussuper.com.au