Three of Australia’s big banks are offering their staff in-house superannuation funds that outperform schemes offered to their own customers, it’s been revealed.
An analysis of funds by Industry Super Australia looked at funds made available to those working at the Commonwealth Bank, ANZ and National Australia Bank, and compared them with those offered to the general public.
Over a 10 year period, the Commonwealth Bank Group Super fund delivered an average annual 6.2 per cent return, compared with the publicly-available Colonial First State FirstChoice Superannuation Trust, which delivered a 3.4 per cent return.
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Over a decade the monetary difference equated to nearly $24,000.
The ANZ Australian Staff Superannuation Scheme had a 5.3 per cent return, compared with the public OnePath Masterfund’s 3.3 per cent result – a difference of $7000.
And the National Australia Bank Group Superannuation Fund A result of 5.3 per cent compared with The Universal Super Scheme result of 3.8 per cent, or $6750.
Industry Super Australia chief executive David Whiteley said it raised significant questions for banks.
“What the banks should now be explaining to the public is why they can deliver, over the last 10 years, investment returns around about two per cent more for their staff than they can do for the general public,” Mr Whiteley said.
“Our concern is that the banks are reducing the perceived integrity of the system and that could over time reduce support for compulsory super.”
The results follow polling commissioned by Industry Super Australia which showed 70 per cent of Australians believed all superannuation funds should operate on a not-for-profit basis.
“The public doesn’t particularly trust the banks, has concerns about the banks’ involvement in super,” Mr Whiteley said.
Australians interviewed by SBS News were unaware of the difference in returns for the superannuation schemes.
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“I was not aware of this,” Remesh Rasdoji said.
“If banks are doing that then they are favouring their own employees which is not fair.”
Annemaree Hooker agreed it was unfair.
“I think we all work, we’re all entitled to the same entitlements,” she said.
“I had no idea,” Alice Conibear said.
“I guess a lot of that could actually come down to financial acumen.
"When you’re working within the industry you’re a lot closer to what is actually happening in the industry and how to maximise your returns and I think the general public has less of an engagement in superannuation and that has a huge factor as well.”
Consumer group Choice spokeswoman Erin Turner said: “Banks are ripping Australians off in big and small ways every day, whether that’s through superannuation, insurance, credit cards or savings.”
“If you’re with a big bank the message to consumers is 'you’re paying too much and they’re not treating you well. Switch, switch today, get out',” she said.
The Financial Services Council declined to comment, saying it was a matter for individual banks.
