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Your Future Your Super legislation referred to Committee
The Your Future, Your Super legislation, announced in last October’s Federal Budget, has been introduced into Parliament and referred to the Senate Economics Committee. The Committee’s report is due by 22 April 2021 and the measures are intended to apply from 1 July 2021 if passed.
The measures are designed to stop the creation of unintended multiple superannuation accounts by ‘stapling’ accounts to members so their original super account follows them when they move jobs.
The measures are also intended to make it easier for members to choose a well-performing product through a new online comparison tool, and increase accountability and transparency in the sector by having superannuation funds comply with a new duty to act in the best interests of members.
However, some superannuation funds and industry observers are concerned the legislation, although worthy in its intent, is seriously flawed and should be completely reworked.
In a media release, the Australian Institute of Superannuation Trustees (AIST) said the Bill “ignores the fact that neither of the Commissions – (the Productivity Commission (PC) and Royal Commission (RC)) – recommended that the Minister of the day be given the extraordinary power to ban super fund investments or expenditure regardless of whether they are in members’ best financial interests.”
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