The Treasury Laws Amendment (Your Future, Your Super) Bill 2021 was passed by the Senate on 17 June 2021, and now awaits Royal Assent.
The Bill makes amendments to the Superannuation Guarantee (Administration) Act 1992 and Superannuation Industry (Supervision) Act 1993 to enhance the superannuation system by:
- limiting the creation of multiple super accounts for employees who do not choose a superannuation fund when they start a new job. Effective for new employment on or after 1 November 2021;
- introducing an annual performance test to be conducted by APRA for MySuper products from 1 July, and for ‘other products’, as specified in regulations, from 1 July 2022. Trustees will be required to give notice to its beneficiaries where their product has failed a performance test. Where a product has failed the performance test in two consecutive years, the trustee will be prohibited from accepting new beneficiaries into that product; and
- increasing trustee accountability by ensuring trustees only act in the best financial interest of their members. Superannuation funds will also be required to provide better information regarding how their funds are managed and disclose all portfolio holdings from 1 July 2021.
The Government has indicated that supporting regulations are likely to be finalised in the next 2-3 months.
Parliament of Australia, Treasury Laws Amendment (Your Future, Your Super) Bill 2021, 17 June 2021