Minister's proposal to avert tariffs 'ill-advised': SMC

The Super Members Council (SMC) has rubbished minister for trade and tourism Don Farrell's suggestion to invest super member's savings in US meat-processing facilities to avert lamb tariffs.

The comments follow One Nation's proposal offering Australians paying rent or a mortgage 3% of their compulsory super contributions directly to them for up to three years.

The SMC argues there are more politicians tempering with the super sector to "solve other policy problems".

"Super has one job: to grow Australians' retirement savings to deliver them the strongest possible retirement income by investing only in members' best financial interests," SMC said.

"Australians are crystal clear that their super should only be invested where it can deliver them the strongest possible long-term risk-adjusted returns."

SMC chief executive Misha Schubert said the super funds make these investment decisions independently of governments "for very good reason", lambasting Farrell's comments.

"Comments like these are ill-informed and ill-advised. Super funds invest completely independently of governments for very good reason - they invest only in the best financial interests of their members," Schubert said.

"The role of super is to deliver the strongest possible investment returns for members. It is not the job of super funds to solve other policy problems - nor should it ever be."

Meanwhile, the Association of Superannuation Funds of Australia chief executive Mary Delahunty provided a moderately-toned response, stating she was opened to discussion on investment opportunities so long they benefit members.

"Super funds invest in a diverse range of sectors across the world. Whether it is Canadian airports, British energy infrastructure, or American farming, if an investment opportunity offers good returns for working Australians, super funds will likely be interested in exploring it," Delahunty said.

"Every super fund independently assesses any investment opportunity on its financial merits.

"While the idea reported today has not been raised with the superannuation sector, we would welcome a discussion with the government on it. Our sector is always on the lookout for new opportunities for funds to bring good financial returns home to Australian savers."

She reiterated SMC's argument that super fund's obligation is to act in the best financial interests of its members.

"Super funds' investments often do support the nation's trade interests; that is a byproduct, not a purpose, of investing well for members," she added.

"The US is the largest destination for super funds' international investments. America's vast and diverse markets offer good opportunities to invest for members' gain. Engagements such as the Australian Superannuation Investment Summit in the US have helped to identify these opportunities."