Shorten commits to 2013 MySuper implementation date

The Government has committed to the introduction of the Cooper Review’s MySuper proposal from 1 July, 2013.

The Assistant Treasurer and Minister for Financial Services, Bill Shorten, committed to the introduction date in a statement delivered to the Parliament yesterday, saying the introduction of MySuper formed the first part of the Government’s response to the Super System Review.

“MySuper is designed to provide a simple, low-cost fund that has no unnecessary fees or charges and simple features that will make it easier to compare fund performance,” he said. “It will replace existing default funds.”

Shorten said that only those funds whose default product met MySuper standards would be able to operate as a default fund.

“Labor will introduce new standards that providers of MySuper products must meet, including no entry fees, with exit fees limited to cost recovery, a ban on commissions and conflicted remuneration structures in relation to retail distribution and advice in line with the Government’s financial advice reforms, new duties will require super fund providers to deliver value for money or be stripped of their licence by the regulator, a single, simple and easy-to-understand investment option designed to maximise a person’s retirement income, and standardised reporting requirements in plain English.

Shorten said MySuper funds would be licensed by the Australian Prudential Regulation Authority, which would also monitor and publish MySuper fund investment returns and costs to ensure members were getting value.

Shorten also committed the Government to the implementation of SupersSteam and the use of Tax File Numbers as identifiers.