Related External links:
Stronger Super website
Government's response to the Super System Review.
ATO website Q&A
Assists super funds and their administrators prepare for implementation of various super reforms.
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:
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.
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.
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.
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. A key feature is that APRA will develop prudential standards and guides for superannuation in much the same way it has for the banking and insurance sectors.
APRA Prudential Standards – more information
The Government's Stronger Super website includes full details on the reform package.
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 FoFA was passed into law in June 2012. The government has also announced a soft regulatory approach in the first 12 months of FoFA’s operation.
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. As well as this, the ASFA Policy team were members of the working groups looking at MySuper, SuperStream, Governance and SMSFs.
ASFA will continue to assist its members implement the many changes brought about by the reforms. We will do this by keeping members abreast of all the legislative reform developments and implementation issues through our dedicated Super Reforms web pages. ASFA will also provide upto date information through its email communications and ASFA Actions. Copies of these can be found in the ASFA Toolbox.
ASFA has recently reviewed and redesigned its policy development structure and has replaced its policy sub-committees with specifically focussed Policy Councils. The Councils will be ASFA’s main policy setting vehicle and will work closely with ASFA’s Policy Committee in determining the direction and scope of ASFA’s advocacy and policy settings.
ASFA has also established a number of Standing Advisory Panels that will drive effective outcomes from the reform agenda and focus on issues that arise from implementing the Stronger Super reforms.
Standing Advisory Panels – more information.