The Morrison Government is making important changes to ensure the superannuation system’s financial reporting and auditing framework is commensurate to the size and significance of the sector.
As at 31 March 2021, registrable superannuation entities with more than four members had a combined value of $2.1 trillion. By comparison, the value of all listed companies in Australia at that time was $2.3 trillion, yet superannuation funds are subject to less stringent financial reporting obligations than public companies and registered schemes. While super funds are required to provide financial information and data to the Australian Prudential Regulation Authority, there is currently no requirement to prepare financial reports in accordance with Australian Accounting Standards and for these reports to be lodged on the public record.
This results in a lack of transparency, accountability and regulatory oversight unsuited to the compulsory nature of superannuation.
These reforms will require registrable superannuation entities to prepare, and lodge audited financial reports with the Australian Securities and Investments Commission (ASIC). This will increase the transparency of financial information and better enable regulators’ oversight of superannuation funds.
These changes are another way the Morrison Government is improving the accountability and transparency of superannuation funds. They complement the Government’s Your Future, Your Super package, which makes superannuation work harder for Australians, and leverage the expansion of ASIC’s role in superannuation as recommended by the Financial Services Royal Commission.
$1 in every $10 Australians earn is compulsorily directed into superannuation. The Morrison Government continues to reform the sector to be more transparent, efficient and fit for purpose, as Australians expect and deserve.
Consultation on exposure draft legislation and explanatory material is open until 8 September 2021.
The Government welcomes submissions from all interested parties.