The Morrison Government has today released for consultation exposure draft regulations underpinning Treasury Laws Amendment (Your Future, Your Super) Bill 2021.
The Your Future, Your Super reforms will ensure the superannuation system works harder for all Australians by reducing waste, holding underperforming funds to account and strengthening protections around the retirement savings of millions of Australians.
These reforms are estimated to save Australian workers $17.9 billion over 10 years.
The Your Future, Your Super package is scheduled to commence on 1 July 2021. The regulations released today for consultation:
- Outline a strengthened methodology for the annual performance test, as well as requirements for notifications to members.
- Prescribe the definition of a ‘stapled fund’, including tie-breaker rules for determining which fund is to be an employee’s stapled fund where they have multiple existing funds.
- Specify how products will be ranked on the online YourSuper comparison tool.
- Set out the manner in which superannuation fund portfolio holdings are to be disclosed to members, bringing Australia into line with global best practice.
- Prescribe the information that must be included with the notice of an Annual Members’ Meeting.
- Further strengthen the prohibition on funds offering inducements to employers.
The Government has made several amendments to strengthen the performance test.
Administration fees will be included in the performance test, ensuring that the test focuses on the final member outcome and is consistent with information presented to consumers on the online YourSuper comparison tool.
The Government has also added Australian unlisted infrastructure and unlisted property as specific asset classes covered by the performance test. This will improve the accuracy of the performance test; strengthen the focus of the test on investment outcomes delivered to members; and ensure that Australian superannuation funds can invest with confidence in these domestic assets.
This package builds on the Government’s legislated superannuation reforms which have included consolidating 3.3 million unintended multiple accounts worth $4.3 billion, capping fees on low balance accounts, banning exit fees and ensuring younger Australians do not pay unnecessary insurance premiums.
Under the Your Future, Your Super reforms, the Morrison Government is taking the next step in modernising and improving the superannuation system to ensure it is working harder for you.
Consultation will be for four weeks and close on 25 May 2021. Further information is available at the Treasury website.