The Coalition Government has called on the senate to pass its Protecting Your Super Package (PYSP) and latest Member Outcomes legislation as industry superannuation funds continue on their growth trajectory.
Assistant treasurer, Stuart Robert, said under the PYSP, the Government would cap fees at three per cent for low balance accounts ($6,000 and under), which it estimates would save around seven million Australians approximately $570 million in the first year alone.
“We're also banning exit fees, removing the disincentive to account consolidation,” he said. “This measure will save low-income earners, working mothers, students as well as causal and part-time employees from erosion of fees.”
The PYSP would also make insurance an opt-in choice for people under 25 years, people with low balance and members with inactive accounts, which the Government estimates would save Australians $3 billion in insurance premiums.
Robert said inactive accounts without a contribution for 13 months or longer would be returned to existing accounts, which would reunite around four million people with lost superannuation.
“The Government is increasing choice of funds for Australians and closing loopholes letting some employers reduce their Superannuation Guarantee contributions that people who salary sacrifice,” he said.
The International Monetary Fund has raised concerns about liquidity risks within Australia’s superannuation system due to a growing share of illiquid investments, such as private equity and credit.
As new superannuation payment rules approach, a firm has underscored the need for funds to brace for significant technological adjustments.
There was a 5 per cent rise in complaints to AFCA relating to superannuation in the financial year 2023–24, according to its annual report.
APRA has ramped up its scrutiny of superannuation fund spending, particularly targeting discretionary expenses like travel, entertainment, and conferences that may not be in the best interests of members.