Outdated rules cost super funds billions, says ASFA

Australia’s superannuation sector is being held back by overlapping and outdated regulation, ASFA says, with compliance costs almost doubling in seven years – a drain on member returns and the economy alike.

Ahead of the government’s Economic Roundtable in Canberra on Tuesday, ASFA CEO Mary Delahunty has issued a plea to cut regulatory duplication and outdated rules, warning that compliance costs are weighing on Australia’s $4.1 trillion superannuation sector and holding back returns for members.

In the past seven years, compliance and risk management costs for APRA-regulated funds have almost doubled – from $550 million in 2017–18 to $1.05 billion in 2024–25, Delahunty said.

“Regulation is vital for trust, but when it overlaps or is outdated, it can become a drag on member returns and it impacts productivity,” she said, noting that the changes ASFA is proposing are “small”, but could make a big difference for fund members and the country.

“It will mean more funds for investible opportunities in the productive capacity of Australia, such as housing or clean energy, and that in turn helps economic growth, jobs and returns.”

ASFA’s reform priorities include introducing a “tell us once” reporting system across APRA, ASIC, the ATO, ABS, and RBA to eliminate duplicated reporting, removing outdated non-digital disclosure requirements, improving co-ordination between regulators, and streamlining contribution and retirement access rules. 

The association will also propose modernising the performance test to ensure it better reflects genuine member outcomes, building on the work already done to assess fund performance.

“It’s pleasing to see ASIC looking at the unintended consequences that RG97 has had on institutional housing investment,” Delahunty said.

“Now is the time to explore further ways to modernise the performance test so it doesn’t constrain investment opportunities and in turn member outcomes in the future.”

Delahunty will represent the superannuation sector alongside AustralianSuper CEO Paul Schroder in session 3 of the Roundtable (‘Capital attraction and business investment’) on Tuesday, 19 August 2025.