Retirement
How the royal commission will change the super industry
Four key themes are likely to drive the reforms to the superannuation industry proposed by the royal commission, an industry expert says.
How the royal commission will change the super industry
Four key themes are likely to drive the reforms to the superannuation industry proposed by the royal commission, an industry expert says.

Jonathan Steffanoni, QMV’s principal consultant - legal and risk, said super and financial products in general will look very different in the years that follow the conclusion of the royal commission.
“The future of financial product disclosure probably looks more like SkyScanner and less like an old-fashioned phone book,” Mr Steffanoni said.
Mr Steffanoni said the super reforms would be far-reaching, but one of the biggest changes for consumers would be a simplification of disclosure laws.
“Recommendations directed at simplifying the disclosure laws would benefit from considering the increasing reliance people are likely to have on the data economy, which will enable the fast comparison of financial products and allow individuals to consider their financial profile and the product that will best meet their needs,” he said.

Simplification was likely to be a big theme to come out of the royal commission, said Mr Steffanoni, but there were still fears around that.
“The demands for absolute clarity and certainty on the one hand seem to be giving way to a simpler, and more flexible, principles-based regulation.”
“While simplification can be an effective regulatory approach, it will also require that industry and the public accept greater levels of uncertainty and regulators are prepared to actively interpret and apply the principles.”
Civil penalties for trustees breaching best interest duty would also likely be a recommendation, but Mr Steffanoni cautioned that any change operates as intended and doesn’t create uncertainty.
“The reality is that actions against superannuation trustees for breach of this duty have been few and far between, and the individual complaint resolution schemes – such as SCT, FOS, and now AFCA – have been effective in addressing most individual grievances,” he said.
Civil penalties could shift responsibility from a court to a regulator, which could add an additional layer of unnecessary complication, said Mr Steffanoni.
“Adding an additional layer to the best interests obligation runs the risk of making trustee obligations even more opaque and confusing for both trustees and consumers. In a profit-for-member context, it might also mean that beneficiaries ultimately end up paying any monetary penalties,” he said.
The only other change that Mr Steffanoni predicted for the end of the royal commission was the ending of grandfathered commissions, which seemed to have universal support.
“There was only a single objection to this recommendation in the interim report. This should happen as grandfathered commissions paid from superannuation accounts serve no useful purpose,” he said.

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more