Super Reforms

How the proposed changes to super could impact you and your retirement savings.

What is being proposed?

You may have heard or read about the Federal Government’s plans for changes to superannuation funds. If these proposals become law, they’ll require super funds to restructure. And they could change the way a lot of Australians join super funds and invest for their retirement.

What could change?

Board representation

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.

Default superannuation

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.

More information

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.

* Based on SuperRatings Fund Crediting Rate Survey — SR50 Balanced (60–76) Index. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs. Legislation and proposed legislation is subject to change. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.

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