Australia: Amendment to improve annual performance test for superannuation industry
The amendments apply on and after 1 July 2023.
Amendment to improve annual performance test
The Department of the Treasury has registered a legislative amendment to support the improved implementation of the annual performance test for the superannuation industry and address issues raised in Treasury’s review of “Your Future, Your Super” laws.
The Superannuation Industry (Supervision) Amendment (Your Future, Your Super—Addressing Underperformance in Superannuation) Regulations 2023 amends the Superannuation Industry (Supervision) Regulations 1994, and in particular:
- Amends the testing period, benchmarks and notification letter that form part of the annual performance test requirements
- Amends the operation of the test for trustee-direct products, so that platform products are tested separately to non-platform products, and on a gross-of-taxation basis
- Makes minor technical updates to improve accuracy and clarity for the annual performance test, reduce the administrative burden for the Australian Prudential Regulation Authority (APRA) and confirm the test is fit for purpose when it is extended to trustee directed products
- Makes minor and technical amendments to the “Your Super” comparison tool so that the tool reflects updated reporting standards
The legislative amendment also amends the Electronic Transactions Regulations 2020 to allow APRA to give notifications in relation to the performance test to trustees by means of electronic communication.
The amendments apply on and after 1 July 2023.
Read more on the Federal Register of Legislation.
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