The success of Australia's first industry funds was extraordinary and set the standard for the many that followed. Members and employers were equally represented on the trustee board, there was immediate vesting of all employer contribution, reporting to members was comprehensive and regular, and service was brought within the reach of all members.
The first major funds, BUS and AUST, amalgamated and became known as C+BUS (Construction and Building Unions Superannuation). Cbus was formed in 1984 with membership from the building and construction unions.
That period was also significant because the Accord was signed in 1985 by the Federal Government and the ACTU. It recognised the need for superannuation to extend to cover all workers, and cleared the way for employees to receive employer contributions of 3% of wages in return for increased productivity.
In 1986 as part of the Accord process, the Federal Government agreed to the implementation of a 3% national wage rise to be paid as a contribution to an “Approved Superannuation Fund”.
As award superannuation flowed on to workers across the nation, more and more industry funds were established – in manufacturing, retail, clerical, hospitality, timber and health. By 1988 superannuation coverage for working Australians increased from 35% to 51% and this increased to 71% in 1991.
The Federal Government then introduced the Superannuation Guarantee (SG) to further spread coverage and to overcome non-award compliance. Legislation came into effect on July 1, 1992 and since then coverage for working Australians increased to 80% in 1993, and in 1994 90% of the entire workforce had superannuation coverage. This law also obligated employers to contribute, as a minimum, an increasing percentage of the employee’s salary to superannuation to 9% in the year 2002.
Over the last decade industry superannuation funds have increased in both number and size; and some, such as Cbus, are now large financial institutions in their own right. Cbus today is one of Australia’s largest industry funds with more than 655,000 members, 75,000 participating employers and assets over A$18 billion. It is a national fund covering the entire construction, building and allied industry workforce.
Cbus has strong links to its sponsoring organisations, both unions such as the CFMEU, AMWU, AWU, CEPU, ACTU and ETU and employers such as the MBA and NECA.
Cbus is also unique amongst Industry Super Funds through it's direct property investment company Cbus Property. Cbus Property directly invests in construction around Australia, ensuring jobs for our members working in construction, building or allied industries. Cbus Property has strongly performed since inception, with an average return of over 9 per cent to Cbus members.
