History[edit]

Prior to 1992, superannuation was common among workers; often enforceable through contribution requirements within industrial awards. Due to the variation in award agreements, superannuation requirements were inconsistent across industries.


The Keating Government changed this by legislating a uniform compulsory ‘Superannuation Guarantee’ system. Part of the reform's purpose was to promote self-funded retirement, reducing the burden on the taxpayer-funded pension scheme.^[8] The change came about through a tripartite agreement between the government, employer groups and trade unions. Trade unions agreed to forgo a national 3% pay increase for their members, which would instead be put into the new superannuation system for all employees in Australia. This was matched by employers' contributions which were set to increase over time. Following this, 72% of Australian workers were covered by retirement savings schemes.^[8]


Both union and employer organisations were keen to ensure that money invested into superannuation would be protected from high fees and commission products. This led to the establishment of trade union-based industry super funds, in contrast to pre-existing retail funds.


From 1 July 2005, choice of fund rules came into effect, giving most Australian employees the option to choose the fund into which their employers paid their superannuation contributions.^[9][10] In practice, over 75% of workers remained with their employer’s default fund, which was usually an industry fund. From this time, industry super funds were also no longer required to be industry-specific, and most became open to membership by a majority of Australian workers. Such open funds are called public offer funds. Since 1 January 2014, all employers must select an approved MySuper account as their default super fund into which they must pay all default super guarantee contributions (minimum employer contributions).^[11] However, employees can nominate an alternative investment fund, called a stapled super fund.^[11]


The Fair Work Commission determines which superannuation funds are suitable to be industry super funds and adopted by employers as default funds.^[12]


ME Bank was established and owned by 26 industry super funds.^[13] It was sold to Bank of Queensland in 2021.^[14]