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Australian Government - Stronger Super website

1. Summary

On 29 May 2009, the Government commissioned the Super System Review (the Review), chaired by Jeremy Cooper, to make recommendations to ensure the superannuation system has a sharper focus on operating in members' best interests. The Review's final report was handed to the Government on 30 June 2010.

Stronger Super represents the Government's response to the Review's recommendations. The reforms will make our superannuation system stronger and more efficient, and will help to maximise retirement income for members and make the system easier to use including for employers.

The key elements of the reforms are:

  • the introduction of MySuper, a new simple, cost‑effective default superannuation product;
  • making the process of everyday transactions easier, cheaper and faster through the SuperStream package of measures;
  • clearer duties for directors of superannuation trustee boards and other measures to improve the governance and integrity of the superannuation system; and
  • improved integrity and increased community confidence in the self managed superannuation fund sector.

These reforms are expected to reduce the average fees paid by members by up to 40 per cent.

In February 2011, the Government established the Stronger Super Peak Consultative Group, chaired by Paul Costello and comprising members from industry, employer, employee and consumer groups. The role of the group was to advise the Government on how best to implement the reforms while ensuring a consistent, integrated approach in respect of the various elements of the reforms. The Peak Group was supported by four specialist working groups (covering MySuper, SuperStream, self managed superannuation funds (SMSFs) and governance).

This document provides details of the Government's decisions on key design aspects of the Stronger Super reforms. These decisions have been informed by the extensive consultation process.

Next steps

Stronger Super is one of the most significant reforms to superannuation since the introduction of the superannuation guarantee and will cover a broad range of issues. Therefore, legislation to implement the reforms will be introduced in tranches over the coming months. Consultation with stakeholders will be undertaken on each tranche of legislation.

Before the end of this year, the Australian Prudential Regulation Authority (APRA) will also commence consultation with stakeholders on the development of prudential standards that will form part of the regulatory framework for the superannuation system. The Government will release draft legislation to establish APRA's ability to make prudential standards and to make necessary consequential amendments to legislation and regulations.

Due to the breadth and longevity of the SuperStream program of reforms, the SuperStream working group will continue to meet regularly until the end of 2011. The working group will continue work on the data and e‑commerce standards with a view to having the proposed contributions and rollovers data standards published in early 2012. It is expected that an Advisory Council for SuperStream will be established in early 2012.

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