The Super System Review has released MySuper: Optimising Australian superannuation. This preliminary report provides more detail on ‘MySuper’ which is the new name for a universal product concept.
Some of the proposed features of MySuper include:
- A ban on trailing commissions;
- No contribution fees;
- A new duty on trustees to manage the overall cost to members;
- A default post-retirement product;
- Trustee duties focused entirely on looking after the member.
MySuper would not be a separate default fund. It is designed to be a simple, cost‐effective product with a diversified portfolio of investments for the vast majority of Australian workers (shown to be above 80 per cent of members) who are invested in the default option in their current fund.
It would not prevent Australians from electing to have a fund that offers more choices and options, or want to manage their own super in a self-managed super fund (SMSF).
It is probable that a number of the changes proposed to apply to MySuper – such as the prohibitions on contribution fees and trailing commissions and the requirement to renew advice arrangements every 12 months – will also be recommended to apply in other superannuation sectors, including to SMSFs.
