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SMC calls for regulatory streamlining in super sector
The Super Members Council (SMC) has called for streamlined super reporting to cut costs, boost investment flows, and strengthen retirement outcomes.
The council has urged the government to slash duplication in superannuation reporting, arguing that it would reduce costs and deliver stronger retirements without weakening consumer safeguards.
Set to launch its case at the economic reform roundtable, the body representing 12 million Australians in profit-to-member funds said the current regime forces funds to report separately to multiple agencies, adding unnecessary expenses for members.
The SMC has proposed a “report once, share widely” model, with data lodged to a single regulator and accessed by others as needed.
SMC chief executive, Misha Schubert, said the council believes this is a “smarter and more efficient” way to guarantee solid regulation without compromising key consumer protections.
This call comes as momentum builds for a review of the Australian Securities and Investments Commission’s (ASIC) RG 97 guidance, which sets rules for how investment fees and costs are measured.
It argued that the current framework discourages investment in productive asset classes, such as housing and infrastructure, which have the potential to deliver strong, long-term returns.
The SMC has welcomed ASIC’s plan to examine stamp duty reporting under RG 97, however, the council has pressed for a wider review to ensure the rules do not distort investment flows.
“RG 97 creates a skewed incentive for investors to favour short-term assets or invest via other structures, even when direct investment could generate better long-term investment returns,” the council said.
“That type of distortion risks members missing out on the highest investment returns, while Australian start-ups and scale-ups can’t access crucial growth capital.”
Additionally, the SMC has called on the Productivity Commission to conduct a fresh review of super system efficiency, noting that the last major study was completed eight years ago.
The council argued that such a review could identify new opportunities to reduce costs and improve productivity across the $4.1 trillion sector.
Alongside regulatory changes, the SMC has outlined other ways to strengthen member outcomes while keeping strong consumer safeguards.
These include the swift passage of payday super laws to tackle $5.7 billion a year in unpaid entitlements affecting 3.3 million workers, lifting the super tax refund for 1.2 million low-income Australians, and fast-tracking financial advice reforms to help 2.5 million people better prepare for retirement.
It also proposed digitising binding death benefit nominations and standardising ID and death certificate requirements to ensure grieving families receive benefits more quickly.
This call out from the SMC comes as the Association of Superannuation Funds of Australia (ASFA) flagged that the superannuation sector is being weighed down by overlapping and outdated regulation, with compliance costs for APRA-regulated funds almost doubling in seven years to $1.05 billion.
CEO Mary Delahunty has urged the government to cut duplication and modernise rules, warning the burden is draining member returns and productivity.
ASFA’s priorities include a “tell us once” reporting system across regulators, scrapping outdated disclosure requirements, streamlining contribution and retirement rules, and updating the performance test to better reflect member outcomes and support investment in areas such as housing and clean energy.
AUTHOR
Adrian Suljanovic
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