menu
Final Report on Super System

The government has released the Productivity Commission’s final report of its review of the Australian superannuation system, with a vast number of recommendations issued within. The recommendations are:

  • Default superannuation accounts only created once for new workforce entrants
  • A single “best in show”shortlist of up to 10 superannuation products presented to all new members who are new to the workforce
  • An independent expert panel to run a competitive process to develop this shortlist
  • Elevate MySuper an choice outcomes test for all APRA-regulated funds
  • Clean up unintended multiple accounts through auto-consolidation
  • Require funds to publish simple and single page product dashboards for all superannuation products
  • Require the ATO to provide a link to the relevant product dashboard on a member’s existing account on its centralised online service
  • Amend the Corporations Act 2001 to clarify the definition of “advice”to ensure the term can only be used in association with “personal advice”, ie advice that takes into consideration personal circumstances. Australian Financial Service Licensees must also disclose approved product lists to ASIC. ASIC should conduct selected audits of the information received to facilitate assessment of the effectiveness of advisers in meeting clients’ best interests
  • Evaluate financial literacy programs
  • Reassess need for the Retirement Income Covenant
  • Better guidance for pre-retirees
  • Stronger safeguards for SMSF advice
  • Roll-out Consumer Fate Right for superannuation
  • Ban trailing financial adviser commissions in superannuation, and fees charged by APRA-regulated superannuation funds to be levied on a cost-recovery basis
  • Opt-in insurance through superannuation for members under 25
  • APRA-regulated funds to articulate insurance balance erosion trade-offs

  • Joint task force to advance the Insurance in Superannuation Voluntary Code of Practice
  • Independent inquiry into insurance in superannuation
  • Regulation of trustee board directors by amending APRA prudential standards
  • Require trustee boards of all APRA-regulated superannuation funds to disclose to APRA when they enter a memorandum of understanding with another fund in relation to a merger attempt
  • Make permanent the temporary loss relief and asset rollover provisions that provide relief from CGT liabilities to superannuation funds in the event of fund mergers and transfer events
  • Clearer articulation of a trustee’s duty to act in a members’ “best interest”in the SIS Act 1993
  • Areas of focus for APRA
  • Areas of focus for ASIC
  • Clarify the roles of APRA and ASIC in relation to superannuation with the benefit of the final report and that of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
  • Independent capability review of APRA in 2019
  • Establishment of a superannuation data working group, comprised of APRA, ASIC, the ATO, the ABS and the Commonwealth Treasury
  • Fund an independent superannuation members advocacy body
  • APRA and ASIC to produce a joint report every 2 years on the performance of the superannuation system
  • Independent public inquiry into the role of compulsory superannuation in the retirement income system
  • Establish a Steering Group to oversee implementation of these recommendations

View the full report here

View Comments