03 Jun 2021 Legislation
Treasury Laws Amendment (Your Future, Your Super) Bill 2021
The Treasury Laws Amendment (Your Future, Your Super) Bill 2021, introduced into Parliament on 17 February 2021, was read a second time on 2 June 2021.
Schedule 1 to the Bill amends the Superannuation Guarantee (Administration) Act 1992 to limit the creation of multiple superannuation accounts for employees who do not choose a superannuation fund when they start a new job.
Schedule 2 to the Bill amends the Superannuation Industry (Supervision) Act 1993 (SIS Act) to require APRA to conduct an annual performance test for MySuper products and other products to be specified in regulations (such as ‘trustee directed products’ where the trustee has control over the design and implementation of the investment strategy).
Schedule 3 to the Bill amends the SIS Act to:
- require each trustee of a registrable superannuation entity and each trustee of a SMSF to perform the trustee’s duties and exercise the trustee's powers in the best financial interests of the beneficiaries;
- require each director of the corporate trustee of a registrable superannuation entity to perform the director’s duties and exercise the director’s powers in the best financial interests of the beneficiaries;
- allow regulations to be made that prescribe additional requirements on trustees and directors of trustee companies of registrable superannuation entities where failure to comply with these additional requirements would be a contravention of the best financial interests duty;
- allow regulations to be made to specify that certain payments made by trustees of registrable superannuation entities are prohibited, or prohibited unless certain conditions are met (regardless of whether the payment is considered by a trustee to be in the best financial interests of the beneficiaries);
- reverse the evidential burden of proof for the best financial interests duty so that the onus is on the trustee of a registrable superannuation entity. The reverse onus does not apply to additional best financial interest duty requirements prescribed by regulations; and
- allow contraventions of record keeping obligations specified in regulations to be subject to a strict liability offence to provide regulators with an additional option to respond to compliance issues relating to record-keeping requirements.