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What you need to know about Your Future, Your Super

2023-11-21 05:30

When it comes to the Your Future, Your Super reforms, it may pay to dig a little deeper into the details, as a greater understanding of them could make a huge difference to your retirement.

The Your Future, Your Super reforms involve some of the biggest changes to Australia's super system in years. They came into effect on 1 July 2021, and are designed to make super easier and more effective for you and include:

  • Fund stapling
  • Fund performance test
  • Best financial interest

The reforms aim to drive lower fees, improve fund performance and prevent the creation of unintended and unwanted super accounts. The Productivity Commission in 2019, found that unintended multiple accounts and underperforming funds are harming millions of workers. By fixing these twin problems, it states, someone entering the workforce in 2019 would have an additional $533,000 in their super fund by the time they retire in 2064. 

Below we provide an explanation of each key component and how they may affect you and your fund.

Fund stapling

From 1 November 2021, your fund is 'stapled' to you as you change employers. This move is designed to prevent you from having a number of unwanted funds throughout your employment on which you pay multiple sets of fees.

Once you start a new job, your employer and the Australian Tax Office will ensure your Superannuation Guarantee contributions are paid into your stapled fund. If you want to join your employer's default fund, you'll need to fill out a Superannuation Standard Choice form. If you want to keep your existing fund (the fund which received your most recent super contribution), you don't need to do anything. You are also not locked into any fund – even if you have a stapled fund you can change to another eligible fund at any time.

Performance test

What does this mean? While past performance should not be viewed as an indication of future performance, it can provide some insights. The performance test introduced as part of the reforms, means funds are now being held to account for their performance through an annual test conducted by the Australian Prudential Regulation Authority (APRA). The aim is to put super funds on notice to ensure they provide the best value for their members and to protect them from poor outcomes.

The assessment compares each fund's net investment returns, including fees and taxes, over the past seven years with a benchmark return including fees. The results are published on the YourSuper website on 1 September each year and expressed as 'performing', 'underperforming', or 'not assessed'.

For 2021, only MySuper products – the ones into which employer contributions are automatically paid unless you choose another option – are subject to the performance test, but from 2022, other super products and specified investment options will be included.

Best financial interests

The reforms have introduced a change in the duties of trustees of super funds to ensure they act in the best financial interests of their members, with an aim to increase transparency and accountability. These best financial interests requirements are designed to make super trustees more focused on the decisions they make – such as those around expenses – to ensure they act in their members' best financial interests. Trustees will also have to make additional information available to members at their annual member meeting.

How you benefit

The Your Future, Your Super reforms help you to engage more easily with your super fund and to make better and more informed decisions. After all, the more you save through super, the more you'll have in your retirement savings. It makes sense to gain an understanding of these reforms to ensure you give yourself the best chance of achieving the retirement lifestyle you want.

What you need to know about Your Future, Your Super

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If you're looking for a super solution that's easy to take care of consider ANZ Smart Choice Super

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“ANZ Smart Choice Super” is a suite of products consisting of ANZ Smart Choice Super and Pension (PDF 416kB)ANZ Smart Choice Super for employers and their employees (PDF 594kb) and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (PDF 441kb). The ANZ Smart Choice Super and Pension product is distributed by Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522). ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are MySuper compliant products issued pursuant to the latest PDS available at ANZ Smart Choice Super is part of the Retirement Portfolio Service (the Fund) (ABN 61 808 189 263) and is issued by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673) (OPC), the trustee of the Fund. OPC is a member of the IOOF Group of companies, comprising IOOF Holdings Limited ABN 49 100 103 722 and its related bodies corporate. The Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522) brand is a trademark of ANZ and is used by OPC under licence from ANZ. ANZ and the IOOF Group of companies (including OPC) are not related bodies corporate. ANZ does not stand behind or guarantee these products.

Before re-directing your super or moving your money into ANZ Smart Choice Super, you will need to consider whether there are any adverse consequences for you, including loss of benefits (e.g. insurance cover), investment options and performance, functionality, increase in investment risks and where your future employer contributions will be paid.

All opinions in this article are those of IOOF Group and not ANZ.

This information is of a general nature and has been prepared without taking account of your personal needs, financial situation or objectives. Before acting on this information, you should consider whether the information is appropriate for you having regard to your personal needs, financial circumstances or objectives.

All fees are subject to change. Other key features are relevant when choosing a super fund, including performance. Past performance is not indicative of future performance.

ANZ does not represent or guarantee that access to ANZ Internet Banking or the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available here for iOS (PDF) and here for Android (PDF) and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

You should read the relevant Product Disclosure Statement and Additional Information Guide available at or by calling 13 12 87 before deciding to acquire, or continue to hold, an interest in ANZ Smart Choice Super.