Superannuation Reform

Improving the retirement savings of all Australians

The gift of longer life means Australia is at a critical point in the development of its retirement savings system. We need to improve the operation of the superannuation system so it can deliver a comfortable and secure retirement for current and future generations of Australians.

The Government is making fundamental changes to Australia’s superannuation system to deliver better outcomes for members and their employers by:

• Creating a new simple, low cost default superannuation product (MySuper);
• Raising the bar for those managing our superannuation system, particularly for those managing default superannuation funds in which the majority of Australians invest;
• Providing APRA, ASIC and the ATO with the tools they need to improve their oversight of superannuation; and
• Making the processing of everyday transactions easier, cheaper and faster (SuperStream).

These ‘Stronger Super’ reforms will strengthen the economy by increasing Australians’ superannuation savings and therefore, our national savings.

We are also looking to increase the superannuation guarantee that every employee receives from nine per cent to 12 per cent.

More domestic savings will be available for investment in nation building projects, lessening Australia’s need for foreign savings. In addition, by ensuring the superannuation system is more efficient, these reforms will also improve the productivity of the Australian economy.

We cannot encourage Australians to save more for their retirement without providing certainty in terms of policy settings and without providing comfort that the retirement savings system is operating in their best interests.