MySuper Legislation

Only last month (it seems) did the Government release an exposure draft of the first round of the MySuper legislation and now the Government has released the legislation as a Bill.

A small number of changes have now been made from the version released as the exposure draft.

APRA will now be permitted to issue “MySuper” authorities to trustees of superannuation funds which have just been or are to be established.  In broad terms, a “MySuper” authority will permit the trustee to issue a superannuation product which satisfies the requirements of a “MySuper” product from a fund with less than 5 members.  However, such authorities will be conditional on the superannuation fund being established and having more than 5 members within a specified period.  Additional changes have been made to authorise APRA to cancel a “MySuper” authority if the 5 member limit has not been satisfied at the end of the transitional period.

The circumstances when a trustee can issue a tailored “MySuper” product for the employees (including relatives) of an employer (or its associates) have been clarified.  Now the 500 member threshold need not be satisfied when the tailored product is issued but satisfied by the end of a specified transitional period.  This is a reasonable change and reflects the reality that it takes time to admit 500 members.