Hostplus has not advocated for a ban on workforce management platforms. Hostplus’ submission to Treasury acknowledged the role they play in increasing the efficiency of the employee onboarding process, and the access they can provide employees to valuable sources of information and assistance.
Hostplus’ submission aimed to address a specific aspect of workforce management platforms relating to the employees’ selection of super fund. Specifically, the practice of platforms limiting super fund choice within the platform to those that have undisclosed commercial arrangements with the platform owner.
This practice sidesteps the Government’s stapling reform and undermines Australia’s superannuation system by potentially leading members into poorer performing funds.
Our submission focused on introducing appropriate checks and accountability through reform to ensure that, when it comes to superannuation fund selection, employees are presented with the full suite of options - including to remain stapled to their existing fund - and are not pushed into potentially poorer performing products based on undisclosed financial or other incentives.
Workforce management platforms have the capacity to provide employees with the means to search for, compare and choose from a range of superannuation funds. That innovation is something we welcome and is reflected in our own member engagement channels, which encourage members to compare the performance of our product against our peers.
But, comparison and choice is not an end of itself. Superannuation is a lifetime financial investment and a pillar of the economy. The strength of that system, and most importantly, the interests of the employee, are premised on ensuring that fund selection is based on an assessment of the merits of each fund. Not private commercial arrangements.