The SMSF Association supports the Your Future, Your Super package as a positive structural change for the superannuation sector, says Peter Burgess, SMSF Association Deputy CEO / Director of Policy & Education.
“The package of reforms relating to default funds and MySuper is positive for superannuation participants as it will focus on the issues of high fees and poor performance,” Burgess says.
“The key part of this is a new default superannuation scheme where superannuation will follow an individual when they change jobs, reducing the number of duplicate accounts held by employees, as well as helping prevent new members joining underperforming funds.
“Ensuring that superannuation accounts are ‘stapled’ to a member when changing jobs will reduce the number of duplicate accounts in the system and, in turn, reduce fees. These reforms will save Australians an estimated $17.9 billion over 10 years.
“We believe having a more robust superannuation sector will benefit all participants, whether they choose to have an SMSF at some stage in their life or not.”
“The focus on improved transparency and accountability for superannuation trustees will also be significant for the superannuation sector as we await the details on the development of a new duty to act in the best financial interests of members.”
The Association also expects advisers and trustees, in what is an extremely stressful year because of the COVID-induced recession, will welcome the lack of superannuation tax changes and SMSF measures, especially when considering the changes they have had to come to grips with in recent budgets.