Super news for January 2025

Government allocates more funding to payday super

In a bid to help implement the payday super measure that requires employers to pay their employees’ super entitlements at the same time as their wages, Federal Treasurer Jim Chalmers has announced an additional $404 million in funding over four years.

“The Government will also introduce legislation to recalibrate penalties and charges, incentivising employers to promptly rectify missed payments, with more severe consequences for deliberate and repeated failures,” Chalmers said in the Mid-Year Economic and Fiscal Outlook 2024–25.

The additional funding for the measure due to begin on 1 July 2026 was welcomed by industry associations.

“This reform means workers will see their super build in real-time, alongside their wages. It will mean less lost super and better outcomes in preparation for retirement. We are sure that this change will encourage people to engage more regularly with their retirement savings,” chief executive of the Association of Superannuation Funds of Australia (ASFA), Mary Delahunty said.   

There were more than 500,000 cases of underpayment and over 200,000 cases of non-payment of super in the 2021-22 financial year, according to ATO data, amounting to over $5 billion in lost retirement savings.

Double-digit super returns in 2024

Balanced super fund options provided members with a typical return of at least 10.5% in 2024, with some fund options recording nearly 12% returns, according to analysis by ASFA.

The analysis found some high-growth options returned as much as 15%.

“These returns for 2024 are a great result for working Australians who stand to enjoy a higher standard of retirement living thanks to our world-class superannuation system,” ASFA CEO Mary Delahunty said.

“While strong international share markets have helped propel returns over the last 12 months, it’s the consistent, sophisticated portfolio construction from superannuation funds’ expert investment teams that deliver terrific long-term results regardless of what is happening on the markets.”  

Securing the future of cash

The Albanese Government plans to mandate that businesses must accept cash when selling essential items, with appropriate exemptions for small businesses.

It has also released a consultation paper to gather feedback on its proposal.

“People are increasingly using digital payment methods, but there will be an ongoing place for cash in our society under the Albanese Government. This consultation will help us understand how we preserve cash as a payment option,” Treasurer Jim Chalmers said in a joint press release with Assistant Treasurer and Minister for Financial Services, Stephen Jones.

The Government is seeking stakeholder views on key aspects of the cash mandate such as an appropriate definition of essential goods and services to ensure cash can always be used to access the basics; which businesses the mandate should apply to; and things such as transaction caps or time limits.

Super funds still falling short on unlisted asset valuation

A significant proportion of super fund trustees still display material gaps in key areas of valuation governance and liquidity risk management requirements, according to the Australian Prudential Regulation Authority’s (APRA) latest progress review.

The review found that while trustee capability and approach has generally improved since the last unlisted asset review in 2021, 12 of the 23 licensees under review failed to meet their investment governance obligations under Prudential Standard SPS 530.

At the end of 30 June 2024, APRA-regulated superannuation entities had $500 billion invested in unlisted assets such as property, infrastructure, credit and equity.

In relation to unlisted asset valuation governance, APRA found weaknesses in the areas of board oversight and conflict of interest management, revaluation frequency and triggers, valuation control, and fair value reporting.  

“These latest review findings are concerning and indicative of the fact that many trustees have more work to do to lift their valuation and liquidity risk management practices. APRA expects trustees to review these findings carefully and formulate appropriate remediation plans where needed.

“APRA will not hesitate to take further action where necessary to enforce the provisions of SPS 530 and related regulations, including the responsibilities of relevant accountable persons under the upcoming Financial Accountability Regime,” APRA deputy chair Margaret Cole said.

ASIC sues HSBC for allegedly failing to protect customers

The Australian Securities and Investments Commission (ASIC) is alleging that HSBC Australia failed to adequately protect customers from scammers by failing to have adequate controls in place to prevent and detect unauthorised payments.

ASIC is also alleging it failed to comply with its obligations to investigate customer reports of unauthorised transactions within the specified timeframes required, and to promptly reinstate their banking services in a timely manner.

Between January 2020 and August 2024, HSBC received approximately 950 reports of unauthorised transactions, resulting in customer losses of about $23 million. Almost $16 million of this occurred in the six months from October 2023 to March 2024.

“We allege that from at least January 2023, HSBC Australia was aware of the risks of unauthorised transactions occurring and that there were gaps in their fraud controls. This resulted in some customers getting scammed out of $90,000 or more,” ASIC deputy chair Sarah Court said.

“We allege HSBC Australia compounded the problem by failing to comply with its obligations under the ePayments Code and let its customers down when they needed their help the most, on average taking 145 days to investigate customers’ reports that they had been scammed.”

Hesta offers $60,000 prize pool

Nominations are now open for the 2025 Hesta Excellence Awards for health professionals in aged care, allied health, community services, and disability services.

The health and community services super fund offers a $60,000 prize pool to recognise exceptional work being done in these sectors.  

“We are incredibly grateful for the commitment these professionals bring to our community each day. I encourage people from around the country to make a nomination and help us celebrate and recognise the remarkable contribution these individuals have made,” HESTA chief executive Debby Blakey said. 

Nominations are open until midnight (AEST) Tuesday, April 8. Employers, colleagues, and individuals from the aged care, allied health, community services and disability services sectors can nominate or be nominated for the Individual Leadership or Team Excellence categories.