your future your super

What could the proposed new Your Future, Your Super laws mean for you and your members? Here’s a quick explainer.

As you may know, the Federal Government’s Your Future Your Super (YFYS) legislation was introduced into Parliament recently.

While we understand the legislation’s intent, we’re concerned several of the proposed measures will fail to address the basic issue of fund underperformance. Without a tougher approach to poor performance, the changes won’t improve retirement outcomes for working Australians.

We strongly support reforms that strengthen our world-leading super system and provide equitable outcomes for workers. That’s why we’ll be advocating for sensible changes to this legislation, including:

• disclosing all fees in performance benchmarks, to better reflect the net return members actually get in their accounts
• benchmarks that reflect the sophisticated way we invest in areas such as infrastructure and housing
• an account stapling measure that recognises the important industrial relations links – ‘money follows member’
• an appropriate delay to stapling measures until underperformance is fully addressed, to avoid members being stuck in poor performing funds
• expanding the legislation to include all funds and all products, to include the fragmented choice segment
• reining in proposed regulations so a minister does not have unfettered power to direct how funds invest, or decide on what’s in the best interest of their members. 

We welcome the legislation being referred to the Senate Economics Legislation Committee. We intend to make a submission to the Committee to highlight our concerns.

HESTA will continue to work with others across the sector to fight for positive super reforms that deliver better outcomes for members. And we highly value our union partners who share our commitment to creating a better future for all working Australians. 

_{While every attempt has been made to ensure the accuracy and reliability of the information, it is not guaranteed in any way.}