The Hon Josh Frydenberg MP
Senator The Hon Jane Hume
Assistant Minister for Superannuation, Financial Services and Financial Technology
6 October 2020
YOUR FUTURE, YOUR SUPER – MAKING YOUR SUPER WORK HARDER FOR YOU
The Morrison Government is reforming the superannuation system so that it works harder for Australians.
Once implemented, these measures will benefit Australians by $17.9 billion over the next 10 years.
Our $3 trillion superannuation system is responsible for managing the retirement savings of 16 million Australians.
The current system is letting too many Australians down.
Australians are paying $30 billion per year in superannuation fees.
This is more than the $27 billion Australian households pay on their energy bills or the $12 billion they spend on water bills.
By 2034, it is estimated that Australians could be paying $45 billion in superannuation fees.
At the same time, Australians hold 3 million accounts in underperforming funds managing over $100 billion of their retirement savings.
Commencing 1 July 2021, the Your Future, Your Super package will improve the superannuation system by:
- Having your superannuation follow you: preventing the creation of unintended multiple superannuation accounts when employees change jobs.
- Making it easier to choose a better fund: members will have access to a new interactive online YourSuper comparison tool which will encourage funds to compete harder for members’ savings.
- Holding funds to account for underperformance: to protect members from poor outcomes and encourage funds to lower costs the Government will require superannuation products to meet an annual objective performance test. Those that fail will be required to inform members. Persistently underperforming products will be prevented from taking on new members.
- Increasing transparency and accountability: the Government will increase trustee accountability by strengthening their obligations to ensure trustees only act in the best financial interests of members. The Government will also require superannuation funds to provide better information regarding how they manage and spend members’ money in advance of Annual Members’ Meetings.
The Your Future, Your Super package builds on the Morrison Government’s superannuation reforms to date which have protected the retirement savings of millions of Australians.
Our reforms have consolidated $2.9 billion held in unintended multiple accounts on behalf of 1.4 million Australians, capped fees on low balance accounts, banned exit fees and ensured younger Australians do not pay unnecessary insurance premiums.
The Your Future, Your Super package is the Morrison Government’s next step in modernising and improving the superannuation system to ensure it is working harder for you.
For more information visit www.treasury.gov.au.