Minister’s US lamb investment plan sparks super fund backlash
Trade and Tourism Minister Don Farrell has proposed that Australian superannuation funds invest in the American lamb industry. The move aims to protect Australian lamb exporters from potential additional US tariffs.
Farrell discussed the idea with US officials during G20 trade meetings in Milwaukee. He suggested that investing in US meat-processing facilities and supply chains could benefit both countries’ lamb industries.
Australian lamb exports are already subject to a 12.5 per cent US tariff. An ongoing American investigation into lamb imports may result in further trade barriers.
Farrell argued that super funds should consider the national interest when making US investments. However, he acknowledged that funds would retain autonomy over their investment decisions.
Superannuation industry leaders have criticized the proposal. They emphasize that funds must prioritize members’ financial interests above all else.
Misha Schubert, CEO of the Super Members Council, stated that funds operate independently of the government. She said, Super funds invest completely independently of Governments for very good reason – they invest only in the best financial interests of their members.
The council highlighted that Australian funds rigorously evaluate investments to maximize long-term returns for members. They argued that maintaining this independence is key for protecting retirement incomes and maintaining trust in the super system.
Mary Delahunty, CEO of the Association of Superannuation Funds of Australia (ASFA), echoed these sentiments. She stressed that funds must assess investments based on financial merits alone.
Delahunty acknowledged that super investments can indirectly support Australia’s trade interests. However, she emphasized that generating returns for members remains the primary objective.
While the proposal was not discussed with the superannuation sector beforehand, ASFA welcomed the opportunity for dialogue with the government.
According to ASFA, the US is the largest destination for super funds’ international investments, with its vast and diverse markets offering opportunities to generate returns for members.
