While there was general acceptance by employers and employees alike on default super funds, from 1 July 2021 employers will have to contribute to the existing super fund of a new employee unless the employee elects to open a new fund using the new YourSuper portal to be managed by the ATO.
“This will ultimately lead to employers ceasing to offer default super funds which represents a major shift in how the super industry has operated in Australia since the mid-1980s,” said CA AZ Superannuation Leader Tony Negline.
“This is a complex change that needs to be carefully implemented to ensure that the next generation of Australians will be able to access better super outcomes.
“We have also long argued that consumers need access to more comprehensive super fund information to help them work out which fund suits them best.
“We welcome the announcement that the government will kickstart this by ensuring detailed fund performance and fee data gathered by APRA is published and regularly updated.
“Underperformers will also be banned from accepting new members until performance improves, be forced to tell existing members that their fund is not up to scratch and refer them to the YourSuper portal.
“While it will take some years for these policies to be bedded down and for their longer terms benefits to be clear, the government’s desire to require super funds to be as transparent in their reporting to members as Australian-listed companies are to their shareholders can only lead to better outcomes.”
2020-21 Federal Budget
Coverage on the Australian Federal BudgetFind out more