The Albanese Government is consulting on options to improve the superannuation performance test to deliver a dignified retirement for more Australians.
The performance test helps deliver super returns for Australians and we want to make the test even better.
We are releasing a consultation paper today that seeks input on how to refine the test to ensure super funds provide the best possible returns for their members.
This isn’t about Government directing super investment – it’s about making sure super funds are able to invest in ways that deliver the best possible returns for Australians.
The performance test holds trustees to account for the investment performance they deliver and the fees they charge. Since its introduction, it has helped lift the investment performance of super funds by encouraging continual improvement and the exit of underperforming funds.
The performance test is driving good outcomes, but industry has raised concerns the current test is holding back investment in some sectors that could provide strong returns for members, such as the energy transition and affordable housing.
The test benchmarks were never meant to serve as a prescription on how to invest, but we understand that this is how some industry stakeholders have viewed them.
The consultation paper released today invites community input on the merits of different options to refine the performance test for the long term.
The Government encourages interested stakeholders to engage with the consultation process.
Submissions can be made online and close on 19 April 2024.