Retirement
New super choice form could remove consumer protections
The proposed model for a new digital superannuation choice form for new employees contains less information than existing paper forms, posing a potential risk for super fund members.

New super choice form could remove consumer protections
The proposed model for a new digital superannuation choice form for new employees contains less information than existing paper forms, posing a potential risk for super fund members.

As part of the introduction of the Single Touch Payroll (a new reporting system for businesses with more than 20 employees, which comes in to effect July 2018), the Australian Taxation Office (ATO) is looking to introduce a new digital form for employees to choose their super fund.
David Haynes, a senior policy manager with industry lobby group Australian Institute of Superannuation Trustees (AIST), said the ATO’s proposed form “has a number of flaws” and shouldn’t be introduced until the industry is satisfied the form “will not disadvantage members”.
“If implemented under the proposed model, the form will remove important existing consumer protections and potentially display incomplete, out-of-date and misleading information to members,” he said.
Mr Haynes said the proposed form includes less information than the paper forms currently in use, and notably don’t require employers to list their default fund on the form.
“We know that many super fund members do not actively choose their super fund,” he said.
“The name of the default fund is pre-populated on the existing paper-based choice form, removing this function is a step backward for disclosure.”
Mr Haynes said the introduction of the new form should be decoupled from the implementation of the government’s Single Touch Payroll and instead should not be brought into effect before July 2019, after more consumer testing can be conducted.
A spokesperson for the ATO told Nest Egg that it has undergone “extensive design and consultation” with the super industry over several months, and recently issued a consultation paper asking for submissions from industry bodies.
“The paper provided an opportunity for all interested parties to provide feedback on the design principles, whether the design supports the policy intent, and to raise any unintended consequences,” the spokesperson said.
“The 28-day consultation period has just concluded with a number of submissions provided by industry.”
These submissions – including one from the AIST — are currently under review, the spokesperson said, and the ATO is considering how these might impact the current design.
“We expect this process to conclude before the end of this month,” they said.

Superannuation
Why opt-in super proposal is a ‘secret tax’ on Aussie workers
A proposal to give workers the option to pick between a wage rise or a super contribution increase has been slammed by industry funds, branding it as “a secret tax” on workers. ...Read more

Superannuation
Early super access could be less than expected
Money accessed through the early release of super scheme looked to be coming in under the government’s revised expectations as the scheme drew to a close at the end of 2020. ...Read more

Superannuation
Proposed super reforms to rob millions of Australians
Australia’s largest union has rejected the government’s new super reforms on the basis it will leave members worse off long-term due to being “stapled” to a high-fee fund. ...Read more

Superannuation
ISA takes another shot at super reforms, accuses government of favouring big banks
Just a few days after hitting out at the government’s Your Future, Your Super scheme, ISA is at it again, signalling to the government that it may have a fight on its hands when it comes to this now...Read more

Superannuation
Royal commission reforms pass Parliament signaling more super oversight
The first bill implementing recommendations from Hayne’s banking royal commission has passed through the Parliament. ...Read more

Superannuation
Fears half of super system may be exempt from performance test
While the Your Future, Your Super measure has been a topic of debate for weeks over its ability to create possibly unintended consequences, new questions have emerged about the measure’s ability to ...Read more

Superannuation
AustralianSuper tops $200bn in assets, aims for mega fund title
AustalianSuper has become the country’s first fund to top $200 billion in assets despite the harsh economic conditions which saw Australia dive into its first recession in 30 years. ...Read more

Superannuation
Gender superannuation gap declines to 50%
Superannuation is becoming an increasingly important asset in households’ wealth portfolios, but a gap remains between males’ and females’ account balances, the recent HILDA survey found. ...Read more

Superannuation
Why opt-in super proposal is a ‘secret tax’ on Aussie workers
A proposal to give workers the option to pick between a wage rise or a super contribution increase has been slammed by industry funds, branding it as “a secret tax” on workers. ...Read more

Superannuation
Early super access could be less than expected
Money accessed through the early release of super scheme looked to be coming in under the government’s revised expectations as the scheme drew to a close at the end of 2020. ...Read more

Superannuation
Proposed super reforms to rob millions of Australians
Australia’s largest union has rejected the government’s new super reforms on the basis it will leave members worse off long-term due to being “stapled” to a high-fee fund. ...Read more

Superannuation
ISA takes another shot at super reforms, accuses government of favouring big banks
Just a few days after hitting out at the government’s Your Future, Your Super scheme, ISA is at it again, signalling to the government that it may have a fight on its hands when it comes to this now...Read more

Superannuation
Royal commission reforms pass Parliament signaling more super oversight
The first bill implementing recommendations from Hayne’s banking royal commission has passed through the Parliament. ...Read more

Superannuation
Fears half of super system may be exempt from performance test
While the Your Future, Your Super measure has been a topic of debate for weeks over its ability to create possibly unintended consequences, new questions have emerged about the measure’s ability to ...Read more

Superannuation
AustralianSuper tops $200bn in assets, aims for mega fund title
AustalianSuper has become the country’s first fund to top $200 billion in assets despite the harsh economic conditions which saw Australia dive into its first recession in 30 years. ...Read more

Superannuation
Gender superannuation gap declines to 50%
Superannuation is becoming an increasingly important asset in households’ wealth portfolios, but a gap remains between males’ and females’ account balances, the recent HILDA survey found. ...Read more