Big changes for super

The Your Future Your Super legislation passed by federal parliament in late June will introduce stapling of super funds to individuals and performance tests for super funds.

The details of the legislation are still becoming clear and associated regulations have not yet been finalised. However, changes likely to impact you are outlined below.

Stapling

If you change jobs you will keep your existing super fund. From November, your employer will need to identify and use your current fund to pay your superannuation guarantee contributions. If you don't have a current fund, you will join your employer's default fund - unless you choose to nominate a different fund.

Stapling is intended to make sure you don't have more super accounts that you need, but you can still change funds, and you can still consolidate your super. You should regularly review your fund to make sure it is right for you.

Performance test

The regulator will assess the performance of all super funds each year. Performance information is available from the Australian Taxation Office (ATO) for you to compare funds.

We recommend that you review and compare your fund's performance with others in the industry to make sure your fund is right for you.

Increased disclosure

Super funds must provide more specific details about their operations at the annual member meeting. We encourage all members to attend Prime Super's annual member meeting, which will be held on 14 October this year.

At Prime Super, we believe the core of superannuation is strong, consistent investment returns over the long term with reasonable fees and costs.

Although the legislative environment is changing, Prime Super will keep focused on our investment returns and service to deliver the best retirement outcomes for our members.

For more information about the legislation, you can read the joint media release from the Treasurer and Minister for Superannuation, Financial Services and the Digital Economy.

See our recent article Your super will be stapled – what does that mean?