Superannuation industry bodies and the Minister for Financial Services and Superannuation Bill Shorten have welcomed the passage of the third tranche of the MySuper laws through the Parliament.
The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill, which passed through the House of Representatives with the full support of the Parliament yesterday, includes provisions dealing with the transition to MySuper products.
In a joint press release, the Association of Superannuation Funds of Australia, Australian Institute of Superannuation Trustees, the Financial Services Council and the Industry Super Network expressed their support for the bill.
"Despite differing views on how this should work, the industry has been able to negotiate an outcome which strikes a reasonable balance between the interests of members who have made discrete investment choices and members who have not, or who have chosen for trustees to make those decisions for them," the industry stated.
"Engagement is a big issue in super and we should encourage more Australians to engage with their retirement savings."
The amended transitional provisions are critical, the industry said, as they ensure there is a workable transition so that engaged 'choice' members don't have their arrangements disrupted.
Minister Shorten said he regarded the passage of the MySuper laws as a "big win" for Australian consumers, praising the industry for its efforts.
"Protecting the best interests of members has been the Government's priority and it's very encouraging that the industry has worked constructively with the Government to achieve this goal," Shorten said.
In addition to the new transitional provisions, super funds will be required to publish their full portfolio holdings on their website twice annually, while the Australian Prudential Regulation Authority will be able to publish data on the fees, costs and net returns of MySuper products.
