The Federal Opposition’s move to amend the MySuper bill in the Senate has failed and the legislation has passed for royal assent.

Shadow Financial Services Minister Mathias Cormann tried to change the requirement for super funds with MySuper products to apply to the Australian Prudential Regulation Authority (APRA) for approval before offering them to large employers.

He argued super funds already have authorisation.

“Given the choice between an efficient process or some additional red tape, this Government will invariably go for the additional and unnecessary red tape and that is what it is doing on this occasion,” he said.

“Representatives from across the super industry expressed strong concerns this additional authorisation process would move APRA away from its proper and very important role as a prudential regulator focused on risk and governance and into areas of commercial interest between funds and large employers.”

The proposed amendment allowed super funds to report arrangements, rather than apply to APRA.

Finance Minister Penny Wong dismissed the change, saying it would allow trustees to accept contributions without APRA approval of a fund. The amendment was not put to a vote.

In the same Senate session, the trans-Tasman super portability bill passed without a division, although the Opposition raised concerns it does not include self-managed super funds.

Members of Australian super funds will lose their life insurance if they move to the New Zealand Kiwi Saver scheme. (See earlier story)