The Federal Government has released the exposure draft legislation necessary to increase the ability of superannuation fund members to compare funds and make choices in a default fund environment.
The legislation is regarded as being part of the legislative construct necessary to change the default funds under modern awards regime.
The Assistant Treasurer, Kelly O’Dwyer said the legislation, the Superannuation Legislation Amendment (Transparency Measrues) Bill 2015, was aimed at improving superannuation fund transparency and extending choice of fund arrangements.
In announcing the changes, O’Dwyer said they would ensure that Australians were able to better understand and compare the performance of superannuation funds across the industry, to see where their funds were invested and have greater ability to switch funds, if they chose to do so.
“While most employees can already choose the fund their compulsory superannuation is paid to, in cases where their enterprise agreement specifies a fund, employees have no choice,” the minister said. “It doesn’t make sense to force employees to save money in superannuation, but then leave key decisions about how it is managed outside their control.”
O’Dwyer said the exposure draft legislation would enable employees covered under enterprise agreements or workplace determinations that are made from 1 July 2016 to choose their own super fund.
She this would extend choice to up to 40 per cent of the estimated two million employees who do not currently have choice of fund.
“The draft legislation also implements the Government’s election commitment to improve the quality of information available to super fund members and employers so that they can make informed decisions when comparing the relative performance of funds,” O’Dwyer said.
The exposure draft legislation is open to comment until 26 January, next year.
