Recently disclosed data unveils that industry super funds directed $10.8 million to their union affiliates in the 2022-23 fiscal year. Among the recipients, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) stands out, receiving approximately $3.9 million. This occurs amid internal controversies leading some branches to distance themselves from the central union.
The Australian Prudential Regulation Authority (APRA) released this financial breakdown as part of an initiative to boost transparency within entities overseeing nearly $3 trillion in retirement savings. As per APRA, AustralianSuper emerged as the foremost spender on marketing during this period, shelling out a striking $60.2 million. This figure includes $43 million on advertising efforts, with Google pocketing $7.4 million and $16.9 million aimed at member engagement campaigns.
A critically important portion of AustralianSuper's spending was $6.3 million allocated to collaborative efforts through Industry Super Australia, an advocacy and lobby group representing member interests.
Comparatively, CBUS reported a $34.7 million marketing expenditure. Of this, $2.3 million was funneled to sponsorships aligned with unions and other industry entities, including over $233,000 granted to the CFMEU's contested Victorian division.
The quest for more transparency in fund expenditures continues, as redundancies in fund allocations become apparent. Queensland’s Australian Retirement Trust followed closely, investing $41.8 million in marketing.
Other prominent industry funds like Hesta, HostPlus, and Aware Super also significantly subscribed to high marketing expenses, exceeding $30 million each. Notably, HostPlus has drawn attention for funneling $1.8 million of its member funds into a sponsorship deal with the Australian Football League (AFL), besides a $1.3 million involvement with the Gold Coast Suns team.
The trend of industry fund marketing expenses provides a mixed picture of revenue allocations amid ongoing calls for ethical fund management. Insightful evaluations on whether these expenses fructify into actual benefits for members, or merely embellish promotional stints, can reshape future strategies.
Reference to the original report stems from analysis by Neale Prior and Simone Grogan, emphasizing a substantial and dynamic shift in how member savers’ finances are distributed back into the public sphere.
