A Liberal-led Senate inquiry into Australia’s retirement system has recommended abolishing worker reps from serving on superannuation boards.

Chaired by Liberal Senator Andrew Bragg, the inquiry’s report recommends legislation to abolish the equal representation model, which forms the basis of profit-to-member funds.

These industry funds allow both employer and worker representatives to nominate candidates in equal numbers to serve as trustee board directors.

Profit-to-member funds have outperformed non-representative funds by an average of 1.6 per cent each year over the last 20 years, according to Super Members Council data. For the average Australian, that superior performance puts an extra $190,000 into their retirement savings.

ACTU Assistant Secretary Joseph Mitchell said banning workers’ voices is a direct threat to the financial security of millions of Australians.

“This is just the latest in Peter Dutton’s destructive record on super. The Coalition froze the legislated increase to the Superannuation Guarantee, voted against making super theft a crime, forced Australians to drain their super to get by during the pandemic, and now they want to force people to drain their super to put a roof over their heads.”

The report contained strong dissentions from Labor and Greens senators.

“The effect of this recommendation would be to limit the representation of workers and union representatives on the boards of superannuation funds and potentially increase representation of representatives from big corporations, for example, the major banks,” Greens Senator Nick McKim said in the dissenting report.