The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Chris Bowen

Chris Bowen

Treasurer

27 June 2013 - 18 September 2013

Media Release of 31/07/2013

NO.013

Government's Stronger Super reforms underway

The Rudd Labor Government is implementing its comprehensive package of Stronger Super reforms, ensuring Australia's superannuation system is sustainable and robust.

A central component of the reforms will require greater transparency and information disclosure by superannuation funds.

As part of this improvement to the system, the Government has listened to the concerns of industry, and would support ASIC providing additional time for organisations to implement the required changes.

These are complex changes, particularly around systematic transparency disclosure, and the Government supports the calls for extending the compliance date until 31 December 2013.

The Government reforms, introduced on 1 July, included the establishment of MySuper - a simple and cost-effective default superannuation product with standard features that gives members, employers and analysts the ability to compare default products more easily.

Fifty-seven superannuation funds are now authorised to provide MySuper products.

Other recent Government superannuation reforms include:

  • Boosting the superannuation savings for working Australians by increasing the Super Guarantee rate from 9 to 12 per cent, from 1 July 2013 to 1 July 2019, boosting the retirement savings of 8.4 million workers;
  • Abolishing the Super Guarantee maximum age, enabling workers aged 70 and over to receive the Super Guarantee for the first time;
  • Ensuring low income workers will effectively not pay tax (up to $500) on their superannuation contributions made after 1 July 2013.

For a 30 year old on average full-time wages, the Government's changes will add an additional $127,000 into their super by the time they retire at 67.

The Government has also implemented major improvements to the financial advice industry through the Future of Financial Advice reforms, which became mandatory on 1 July 2013.

This robust institutional framework will give Australians confidence that there is a predictable and consistent stewardship of superannuation.

The Government will make an announcement on the membership of the Council in due course.

I would like to thank the Charter Group members for their contribution to this important initiative: Jeremy Cooper (Chair), the Alan H Goldberg AO QC, Ross Jones, Elana Rubin, and Steve Tucker.

The final report of the Charter Group, A super charter: fewer changes, better outcomes, can be found by visiting the Treasury website.

31 July 2013