Today marks a key milestone in the implementation of the Gillard Government's superannuation reforms, with the Australian Prudential Regulation Authority receiving the first MySuper applications from superfunds.
MySuper is a new cost effective, simple superannuation product that superfunds will be authorised to offer from 1 July 2013. The Gillard Government's MySuper reforms will lower fees and charges and make superannuation more transparent.
Key MySuper features include:
- standardised disclosure of costs, fees, risk and returns, making comparisons easier;
- a ban on the payment of sales commissions and entry fees; and
- new standards for the payment of performance fees to fund managers.
Funds will also have to disclosure executive pay and the assets they have invested in.
'Thanks to the Gillard Government's superannuation reforms, Australians will retire with more savings. This is a good thing for Australia's future,' said Acting Minister for Financial Services and Superannuation, David Bradbury.
Labor built Australia's superannuation system and we are improving super by lowering fees and charges and cutting taxes on superannuation contributions.
In addition to the MySuper reforms, the Government has effectively abolished the 15 per cent contributions tax for anyone who earns $37,000 or less through the provision of the low income earner superannuation contribution. This means over 3 million Australians will receive up to $500 a year more into their super accounts, including part-time working mums and workers on lower incomes.
From 1 July 2013 the increase in universal super from 9 to 12 per cent will commence, further boosting Australians' retirement savings.