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Government’s positive reforms for superannuation fund members pass

Media Release 26 February 2021

26 February 2021

Government’s positive reforms for superannuation fund members pass

The Association of Superannuation Funds of Australia (ASFA) welcomes the passage of the Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 and the Financial Sector Reform (Hayne Royal Commission Response No. 2) Bill 2020 yesterday.

Allowing voluntary transfers to the ATO will be better for members

The Reuniting More Superannuation Bill includes a measure that will allow superannuation funds to voluntarily transfer amounts to the ATO in circumstances where the trustee believes it to be in the best interests of that member.

ASFA Deputy CEO and Chief Policy Officer Mr Glen McCrea said that the Government had delivered on its undertaking to amend the legislation to deliver this important change.

“The flexibility this affords trustees is extremely valuable especially where the trustee holds small residual account balances, arising, for example, from withdrawals made under the COVID-19 early release scheme or low balance fee cap refunds processed after an account has been closed.”

“Improving the flexibility for super fund trustees to transfer balances to the ATO, including low balance accounts, will lead to administrative efficiencies, more super being re-united with members’ active accounts, and reduce the number of multiple accounts.”

MySuper members will continue to be able to pay for financial advice through their super

The Hayne Royal Commission Response No. 2 Bill ensures that ongoing advice fee arrangements are required to be renewed annually by the client and all services entitled to be received are recorded in writing, important protections for advice recipients.

It also ensures MySuper members continue to receive the advice that they need by allowing non-ongoing advice fees to continue to be deducted from MySuper accounts, something ASFA has long supported and advocated for.

“Financial advice is important to superannuation fund members as they consider financial decisions both in the accumulation phase and in retirement.”

“Sadly, not all superannuation fund members are able to pay for financial advice out-of-pocket. It’s pleasing to see that the Parliament recognises that an individual’s superannuation fund account type should not preclude them from accessing, and paying for, worthwhile advice.”

For further information, please contact:

Jacqui Maddock, 0451 949 300.

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.

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