• Federal Budget 2020-2021

Transparency for Super Fund Members

The Government will provide additional funding over four years to implement changes to protect superannuation member’s retirement benefits via increased levies on regulated financial institutions.

Some of the measures include:

  • Your super will follow you to prevent the creation of unintended multiple superannuation accounts by ‘stapling’ an existing superannuation account to an individual
  • The ATO will develop a tool to allow new entrants into superannuation to compare and select a My super product, via the yourSuper portal
  • Providing an obligation on funds to align performance with members’ best interests to ensure that members’ retirement savings are maximised
  • The Australian Prudential Regulation Authority (APRA) will benchmark superannuation products annual net investment performance and will hold fund Trustees accountable for that performance. Underperforming products may be restricted from taking on new members.

BDO Comment

Any measures that make it less likely that superannuation members will lose touch with their superannuation account are to be welcomed, as are measures to increase efficiency. Super fund performance benchmarking will provide greater transparency and accountability for underperforming funds.