The Government’s Your Future Your Super legislation and draft regulations suffer from “fatal flaws” that will result in significant unintended member detriment, according to the Australian Institute of Superannuation Trustees.
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New super laws appear to be moving in right direction for membersia Article
Industry Super Australia welcomes the federal government’s moves to strengthen new performance test laws and to ensure super funds are not penalised for investing in vital local infrastructure projects.
Spurred on by near universal feedback from the industry, the government is now ensuring the Your Future Your Super performance test better focuses on member outcomes and appears to now include administration fees.
The government has also seemingly taken a positive step to benchmark the performance of unlisted assets to more appropriate indices.
Both changes in the proposed regulations released today need to be examined in further detail, but ISA is willing to work with the government on further changes to get the best outcome for members.
A million super accounts may not be up to scratch under major reforms
Major changes to the Federal Government s superannuation reforms could see an extra one million accounts fail to make the grade.
The Government already had underperforming super funds under the spotlight with its controversial Your Future Your Super reforms, but has added extra protections to counter criticisms.
The reforms initially targeted funds that were deemed to be under-performing.
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A million Australian superannuation accounts could be underperforming under new reforms by the federal government.(Getty Images/iStockphoto)
But, in changes announced today, administration and investment fees will also be included in judging a fund s performance. That could mean an extra one million accounts won t pass the test.