In this guide
The Government has committed $159.6 million over four years to implement superannuation reforms that it says will save members $17.9 billion over the next decade.
On 17 June 2021, the government’s Treasury Laws Amendment (Your Future, Your Super) Bill 2021 passed through parliament.
Originally announced in the October 2020 Federal Budget, the Your Future, Your Super package met with some heated opposition but eventually made it over the finish line with some notable amendments.
The government says the new measures, many of them starting on 1 July 2021, will save Australians $17.9 billion over ten years.
Touted as the most significant reforms to super since the introduction of compulsory super in 1992, Treasurer Josh Frydenberg said the measures will ensure the super system works harder for all Australians by reducing waste, holding underperforming funds to account and strengthening protections around the nation’s retirement savings.
Depending on your point of view, the Your Future, Your Super package goes too far, not far enough or, as Goldilocks said of Baby Bear’s porridge, it’s just right.
Here are the key changes.
1. New YourSuper comparison tool
The Australian Taxation Office (ATO) has developed a new interactive online YourSuper comparison tool that will make it easier to choose a new fund or a better fund.
The tool will provide a table of MySuper products, ranked by fees and investment returns, and show a member’s current super accounts, with a prompt to consolidate accounts if they have more than one.
By helping Australians select a good performing fund rather than an underperforming one, YourSuper is projected to result in $3.3 billion in higher member balances over ten years. The government gives examples of a typical Australian entering the workforce in their 20s who could be around $87,000 better off at retirement, while someone aged 50 could be around $60,000 better off at retirement.
