The federal government released the second tranche of its Stronger Super reforms yesterday.
The latest draft contains legislation that would:
- Expand covenants for registrable superannuation entity (RSE) licensees,
- Apply new trustee duties to trustees of an RSE that offers a MySuper product,
- And apply personal duties to directors of corporate trustees in their own right.
It also provides details of the power for the Australian Prudential Regulation Authority to issue prudential standards in relation to superannuation.
These reforms are aimed at streamlining the nation's cumbersome superannuation system and getting Australians more engaged with their $1.3 trillion in retirement savings.
The government introduced the bill on 3 November. The first tranche included a move to increase the super guarantee to 12 per cent from 9 per cent, as well as the fees, processes and other details surrounding the proposed MySuper product, a streamlined form of super for people who are less involved with their retirement savings.
Like the financial advice industry reforms, the Stronger Super drafts have met delays. Initially introduced in February, they were to have been implemented last July but apparently met with obstacles.
The government also wants to whittle away at the $18-billion mountain of unclaimed super and a key sticking point was whether all multiple accounts would be automatically consolidated or whether the mechanism would apply only to super balances above $1000.