Policy & Research

Super Reforms

Stronger Super

The Stronger Super reforms are designed to improve Australia’s superannuation system by removing unnecessary costs and better safeguarding the retirement savings of all Australians.

The reform package is divided into four key areas:

MySuper
The Government will introduce a low cost default superannuation product called MySuper from 1 July 2013, which aims to simplify default superannuation products and improve their transparency and comparability. MySuper Timeline

SuperStream
SuperStream is a package of measures designed to enhance the 'back office' of superannuation. When fully implemented, these measures should improve the productivity of the superannuation system and make the system easier to use. SuperStream Timeline

Self managed superannuation funds
The Government will implement a range of measures relating to self-managed superannuation funds (SMSFs). Reforms in this area will improve their integrity and increase community confidence in SMSFs. They will also improve the operation and efficiency of the sector.

Governance
The Government's measures to strengthen the integrity of the superannuation system aim to improve trustee and fund decisions, efficiency and effectiveness, and so help grow member superannuation entitlements. The regulator, APRA will develop new standards. APRA Prudential Standards – more information

The Government's Stronger Super website includes full details on the reform package.

FoFA

The Future of Financial Advice (FoFA) reforms are designed to tackle conflicts of interest that have threatened the quality of financial advice that has been provided to Australian investors.

ASFA’s primary interest in the development of the FOFA legislation is to ensure that it does not have the unintended consequence of precluding superannuation fund members from having access to assistance with respect to their retirement savings.

The legislation implementing the majority of the reforms is expected to commence from 1 July 2012 although ASFA is conscious of the fact that the first tranche of FoFA legislation is being reviewed by Parliamentary committees and that this could impact the overall implementation timetable. Nevertheless, the Government is consulting with industry on the implementation of the reforms.

ASFA response

ASFA is keeping its members abreast of all the legislative reform developments through our dedicated Super reforms (formerly Stronger Super) email communications. Copies of these can be found in ASFA Toolbox.

ASFA CEO, Pauline Vamos was a member of the Stronger Super Peak Consultative Group, chaired by Paul Costello and tasked with advising the Government on how to best implement the Stronger Super package and the ASFA Policy team were members of the working groups looking at MySuper, SuperStream, Governance and SMSFs.

The year ahead will be challenging for the industry given the significant program of work being faced with the implementation of the Stronger Super and FoFA reforms packages.

ASFA's Policy Sub-Committees will play a vital role in driving effective outcomes from the reform agenda.