What could change?
The Government is proposing reforms that require all super funds to have at least one-third of their board members to be independent – that is, drawn from neither employers nor employees. This would change most industry super fund boards, including ours. AustralianSuper has an equal representation model, with board members representing employers and employees. This has served AustralianSuper members well over the journey with the Fund’s returns consistently among the top 10 performers*.
AustralianSuper employer and employee representative directors already act independently of their other interests when sitting on the board.
The Government also wants change the way people are defaulted by their employer into a superannuation fund. At this stage, the appropriate model to do this hasn’t been decided which makes it hard for people to determine which funds are the best funds to choose from.
Disclosure of fees and costs
Another change surrounds the way Funds disclose all direct and indirect costs to their members.
This difference means you can’t compare apples with apples when deciding between industry funds and retail funds who invest via complex investment platforms. You can’t compare fees at a glance because platforms disclose fees in a different way and don’t disclose all costs. Full transparency of fees and costs will help you choose a fund that doesn’t erode your superannuation balance with high fees.
AustralianSuper is an Industry Super Fund. Industry Super Funds believe that the proposed changes could harm members’ outcomes in retirement. You can read about the Industry Super Funds’ campaign against the proposed changes via https://www.banksarentsuper.com.