Amid all of the chaos that is 2020 would you believe we also had a Federal Budget? The government usually loves tinkering with super but in this budget they really focused on protection of it as opposed to taxation of it. Let’s take a closer look at the “Your Future, Your Super” measures.
The “Your Future, Your Super” reforms are designed to make your super work harder for you. The government is trying to do this by focusing on four key areas:
- Your Super Follows You: Many Australians have multiple super accounts that are eroded by fees and unrequired insurance. Australians will now have their superannuation fund “stapled” to them to ensure it follows them when they change jobs
- Empowering members: The government will introduce a new online YourSuper comparison tool to allow you to compare funds. This will result in improved engagement with your super and enable you to actively choose which fund is best suited to you and your needs. It will also make super funds more competitive driving down fees and increasing retirement savings
- Holding funds to account for under performance: Superannuation funds that deliver poor outcomes will need to inform their members. And if a fund under performs the benchmark two years in a row then they are unable to take on new members
- Increasing transparency and accountability: Superannuation funds will be required to spend members’ retirements savings on activities that are in their best interests and must disclose key information to members ahead of Annual Members’ Meetings
These measures are hoping to save Australians $17.9 billion over 10 years by reducing fees and improving the performance of industry and retail super funds.
If you would like to find out more regarding these new changes please do not hesitate to get in touch with us here.
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.