Repealing member protection standards

The Government has released for public consultation an exposure draft of regulation amendments to repeal the member protection standards in the Superannuation Industry (Supervision) Regulations 1994. This measure will implement a recommendation of the Super System Review.

MySuper fees rules, which are to commence on 1 July 2013, will help protect members from unnecessary fees and charges. The rules will require that all MySuper members be charged fees on the same basis with respect to their MySuper interest. This requirement cannot be met at the same time as the member protection standards, which require fees for small balances to not exceed the investment earnings on the overall account.

Small inactive accounts will be protected from being eroded by fees and charges by being transferred to the ATO. Interest will paid at a rate equivalent to CPI inflation from 1 July 2013. These balances can be reclaimed from the ATO at any time.

This measure will have effect from 1 July 2013.

Making a Submission

Interested parties are invited to comment on the exposure draft.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Wednesday, 13 February 2013

Address written submissions to:

Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: strongersuper@treasury.gov.au

For enquiries please call Louise Lilley (02) 6263 3327 .

Key Documents

Exposure Draft 140KB 391KB
Explanatory Material 87KB 64KB

Make a Submission

Submit Online

Alternatively submit via post 60KB