The Federal Government is pushing ahead with legislation which it says will increase consumer protection on superannuation products. The Superannuation Safety Amendment Bill is intended to force all super fund trustees to adhere to new rules and regulations and hold Australian Prudential Regulation Authority (APRA) approved licences.

The legislation has been through a thorough preparation, with Assistant Treasurer Helen Coonan saying it embodies the principles of the Senate Superannuation Committee's review of super safety, as well as the Mercer Review of super fund regulation.

The proposed changes are expected to come into effect by July 1 next year. After then, super funds will need to prepare risk management plans and increase their reporting requirements in addition to obtaining a licence. A two-year transitional period will also be put into place.

Senator Coonan says the Bill provides protection for Australians’ retirement savings, making super “safer than ever”.

“We must have an environment in which people are motivated to plan and save with confidence and we must work to increase simplicity and security in our superannuation system,” she said.

She says increasing public confidence in Australia’s super system is a top priority for the Government. “After the family home, superannuation savings is the most important asset of Australian workers and the licensing of superannuation trustees by APRA is an important step towards further securing the safety of those assets.”