The Prime Minister, Deputy Prime Minister and Minister for Superannuation have announced that if re-elected the government will implement a simple, low-cost superannuation product called “MySuper” from 1 July 2013 as recommended by the Cooper Super Review.

It will also require that an individual’s TFN will be the primary identifier of member accounts from 1 July 2011.

It will continue to allow art to be part of self-managed superannuation funds despite the review’s recommendation that it be excluded. (UPDATE: New storage rules)

MySuper products will offer:

• No entry fees, with exit fees limited to cost-recovery.
• A ban on commissions and conflicted remuneration structures in relation to retail distribution and advice in line with Government’s financial advice reforms.
• New duties that require superfund providers to deliver value for money or be stripped of their licence by the regulator.
• A single, simple and easy-to-understand investment option designed to maximise a person’s retirement income.
• Standardised reporting requirements in plain English.

MySuper funds will be licensed by APRA, which will also monitor and publish MySuper fund investment returns and costs. Anyone making contributions to superannuation will be able to open a MySuper account.

Use of Tax File Numbers (TFNs) will help locate lost accounts and help members consolidate and switch accounts. Legislation willo ensure that, from 1 July 2011, an individual’s TFN will be the primary identifier of member accounts. This will be subject to strict conditions to ensure privacy and security of information.

If re-elected a full response to the Cooper review will be released by the Government by the end of 2010, following further industry consultation.