Your super in 2021: What’s changed?

The Superannuation Guarantee (SG) is the minimum amount that an employer must pay into an eligible employee’s super fund. On 1 July 2021, the SG rate rose from 9.5% to 10.0%.² Please note that current Queensland Government contribution arrangements will remain unchanged.

The SG rate is scheduled to progressively increase to 12% by July 2025.

Your superannuation account previously did not automatically follow you from job to job and eligible employees needed to provide their super account details to new employers. If they did not provide their super account, the new employer would create a new super account for them.

However, from 1 November 2021, your super account will follow you. It means that if you change employers, your new employer will be able to find your existing super account through the Australian Taxation Office (ATO) and not need to create any new account for you, unless you want them to do so. This will be called ‘stapling’ your super account to you.

While some people may intentionally have more than one super account, many people may have more than one super account without knowing. Stapling aims to reduce unintended multiple accounts.

The benefits of consolidating your super into one account may include::

• Paying fewer fees: Having your super in one account could mean fewer fees
• Less paperwork: One super account means one statement
• Easier tracking: One super account may make your super easier to manage
• Avoiding duplication of premiums: One super account may reduce your chance of paying multiple insurance premiums.

Selecting a well-performing superannuation product rather than an underperforming one may significantly boost your retirement income.

To make it easier to compare your options, from 1 July 2021 the ATO provides you with access to a new, interactive, online YourSuper comparison tool to help you decide which super product best meets your needs.

The YourSuper comparison tool provides a standardised comparison of MySuper products. It also shows which Australian Prudential Regulation Authority-regulated products a person has and allows any one of them to be included in a comparison.

• Provides a table of simple super products (MySuper) ranked by fees and investment returns.
• Links you to super fund websites where you can choose a MySuper product.
• Shows your current super accounts and prompts you to consider consolidating accounts if you have more than one.

Or you can put yourself in control by comparing QSuper today.

Another of the 1 July 2021 super reforms puts an onus on super fund trustees to provide more details about the fund’s investment decisions and to demonstrate how those decisions are in the best financial interests of members.

The super trustees are now required to:

• Comply with a new duty to act in the best financial interests of members
• Demonstrate that there was a reasonable basis to support their actions being consistent with members’ best financial interests
• Provide members with key information regarding how the fund manages and spends its money in advance of Annual Members’ Meetings.
• Have enhanced record keeping of decisions made.

This reform aims to hold funds to account for underperformance, with MySuper products subject to an annual performance test.

The test is based on a comparison to a benchmark set by the regulator. The new performance framework will be the primary method for measuring underperformance in the superannuation sector.

If a fund is found to be underperforming, it will need to inform its members by 1 October 2021.

Underperforming funds will be listed as underperforming on the YourSuper comparison tool until their performance improves.

Super trustees who fail two consecutive underperformance tests will not be permitted to accept new members into the underperforming product. APRA will determine when the underperforming product can accept new members.

The testing regime is set to begin with MySuper products from 1 July 2021 and expand to all super products from 1 July 2022.