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Your Future, Your Super reforms: what they mean for you

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Updated 1 September 2021

The Government’s Your Future, Your Super reforms came into effect on 1 July 2021 and are intended to provide:

  • Greater control and visibility over your superannuation.
  • Better retirement outcomes for you.
  • Greater transparency around how funds manage your money.
  • Safeguards against multiple super accounts being created unintentionally when you change jobs.

The Government’s reforms are aimed at delivering better outcomes for members. LGIAsuper is supportive of changes that benefit our members. As a profit-for-members fund since 1965, our members always come first.

Here are the four most important changes, and what they could mean for you.

1. Making it easier to compare MySuper products

It can be difficult to understand how MySuper products compare against each another, particularly when they all have different fees and returns.

The reforms will mean:

  • The Government has created an online comparison tool called YourSuper.
  • You can now compare all the MySuper products being offered by super funds.
  • The YourSuper comparison tool ranks 80 MySuper products by fees and net returns, and lets you compare products in further detail.
  • This tool is provided by the Australian Taxation Office (ATO) and will be updated quarterly.

2. Annual assessments of MySuper products

As market conditions change each year, it can be hard to know if you’re staying on track to achieve your goals. It’s important to assess whether your super is invested in the right strategy for you.

The reforms will mean:

  • From 2021, a new mechanism is being used to assess all MySuper products against a recently developed benchmarking test. Other investment options will be assessed from 2022 onwards.
  • This annual assessment is conducted by the industry regulator, the Australian Prudential Regulation Authority (APRA).
  • Any fund that performs below the benchmarking test must notify its members.

These changes will apply to other investment options from 1 July 2022.

2021 performance test

APRA’s first annual performance test was completed in August 2021. Net investment returns (after fees) were measured for all MySuper products over the seven-year period up to 30 June 2021.

Our fund’s MySuper product passed the performance test.

Results of the performance test are available on the APRA website.

3. Greater transparency and accountability

Your super could be one of the most valuable assets you own. It’s important that the fund which is managing your money is held to the highest standards of transparency and accountability.

The reforms will mean:

  • The Government has increased transparency and accountability for how super funds use members’ retirement savings.
  • Super fund trustees must now comply with a new duty to act in members’ best financial interests. They must also demonstrate that their actions were in members’ best financial interests.
  • Trustees must also provide information about how they manage and spend their members’ money in advance of their Annual Members’ Meeting.

4. Cutting down on multiple super accounts

Unintended multiple super accounts tend to be created when you change jobs. If you are one of the many Australians with more than one super account, you could be paying more in fees than you need to.

The reforms will mean:

  • If you start a new job and do not choose a super fund, you may have your contributions automatically directed to one of your existing funds.
  • If you don’t already have an account with a super fund, your new employer will pay your super contributions into its default super fund.

This new measure is called stapling, and it comes into effect on 1 November 2021.

No change for local government

Local government employers will be treated differently under this new legislation, and existing default arrangements will continue unchanged.

We will provide further information to members when it becomes available, and will be working closely with local government employers to implement the new regulations.

Consolidate your super

If you have multiple super accounts, you can consolidate them into one account.

Consolidating your super is quick and easy, and it can be done online: consolidate your super

Before consolidating, you should consider what is best for your situation.

  • Compare your super funds, choose the one you think will give you the best long-term outcome.
  • Check with your other super fund(s) to see if this could result in changes to your employer contributions, any fee or tax implications, or loss of insurance cover.

Further information and advice

LGIAsuper's team of qualified professionals can provide financial advice and guidance on your super and your future.

LGIAsuper members can receive limited financial advice on a single topic related to super, at no additional cost. More comprehensive financial advice is also available, and fees will vary depending on the type and complexity of advice.

We also offer our members Super Health Check appointments over the phone or video call, at no additional cost.

If you would like further information about these changes or to discuss the type of appointment that would suit you best, call us on 1800 444 396.