Australia's Superannuation Funds Spent Over AU$400M On Marketing, Sponsorship In 2023: Report

Australia's superannuation funds spent more than AU$400 million of their members' savings on marketing and sponsorship during the 2023 financial year, with biggest beneficiaries being sports clubs and the construction union CFMEU, according to new data from the Australian Prudential Regulation Authority (APRA).

The APRA released a comprehensive breakdown of superannuation funds that manage approximately AU$3 trillion in retirement savings.

A handful of industry funds accounted for most of the spending, with AustralianSuper being the largest marketing spender in the 2022-23 financial year, spending a total of AU$60.2 million. Queensland-based Australian Retirement Trust ranked as the second largest spender on marketing, investing AU$41.8 million.

While AustralianSuper, Australian Retirement Trust, Aware Super, BUSSQ, CBUS, First Super, and Mine Super handed AU$14 million to different unions, CFMEU and CFMMEU received AU$3.8 million, Sky News reported.

Among the AU$43 million spent on marketing by AustralianSuper, AU$7.4 million went to search engine giant Google, while AU$16.9 million of member funds were spent on campaigns, including AU$6.3 million was spent through lobby group, Industry Super Australia.

First Super funded AU$2.3 million toward "administration expense" and spent nearly AU$18,600 on CFMMEU for advertising or marketing.

Mine Super paid the CFMEU's mining and energy division just over AU$4,600 for a sponsorship agreement, besides paying more than AU$10,000 which were listed as being for "premises."

The APRA report does not mention whether the funds were scrapped after the CFMEU was placed under administration.

The Australian Workers Union (TAWU), United Workers Union (UWU) and the Australian Manufacturing Worker's Union (AMWU) were the other beneficiaries.

AustralianSuper gave over AU$200,000 to both TAWU and UWU in "advertising or marketing," while the latter received AU$180,500 from HESTA. Mine Super gave more than AU$105,000 to the AMWU for "board and board committees," in addition to spending on CFMEU, with Aware Super providing more than AU$102,000 to the Health Services Union for the same expense type.

HostPlus invested AU$1.8 million in its sponsorship agreement with the AFL and AU$1.3 million to support the struggling Gold Coast Suns.

Speaking at the Australian Financial Review Business Summit on Wednesday, APRA deputy chair Margaret Cole warned that the financial regulator would keep a close watch on how funds were using members' savings. APRA had found some "questionable expenditure" that did not benefit the members, she noted, adding that she had contacted major funds.

"We understand that expenditure is required and that expenditure on marketing is required, but there are some things that just do not look as if they're going to pass the test," Cole noted.