The Albanese Labor Government is acting to strengthen the annual superannuation performance test.
This is all about better aligning and unlocking investment that also boosts productivity, while keeping member interests front and centre.
Labor built the superannuation system, and the Albanese Government is always looking for ways to make it stronger to deliver a secure retirement for fund members.
Any reforms will not water down the test, which is a crucial part of the superannuation system and here to stay.
In our first term we expanded coverage from 80 products to more than 800 in 2023, to protect more members from underperformance.
Following last year's Economic Reform Roundtable, the Government committed to examining the performance test to ensure it is not creating unnecessary barriers to investment.
While the performance test has played an important role in improving outcomes for members, aspects of the current design may be discouraging investment in some sectors that could deliver strong, long‑term returns.
There are also opportunities to modernise and strengthen the performance test, including to ensure the coverage of the test keeps pace with the evolution of the superannuation sector and provides strong protections in light of the collapse of Shield and First Guardian.
Since the Roundtable, Treasury has led a technical working group of industry and experts to examine these issues, building on the public consultation undertaken in 2024.
The Government will now undertake public consultation on a targeted set of options aimed at removing unnecessary constraints on investment decisions while maintaining a robust and enduring testing framework that upholds high standards for members.
The consultation will also consider whether the test should be expanded to cover a broader range of products, to improve transparency and strengthen member protections.
This work recognises the central role of Australia's $4.5 trillion superannuation sector in supporting the efficient flow of capital across the economy to drive innovation and economic growth, while helping Australians achieve better retirement outcomes.
The consultation paper released today invites views from across the sector and community to ensure any changes are well designed, evidence‑based, and aligned with the long‑term interests of superannuation members.
We've legislated the objective of superannuation, lifted the Superannuation Guarantee to 12 per cent, we're paying super on government‑funded paid parental leave and we've legislated payday super to start on 1 July this year.
We're also making super fairer from top to bottom by boosting the superannuation savings of more than a million low‑income workers, and better targeting tax concessions on large balances.
Submissions can be made through the Treasury Consultation Hub and close on 19 June 2026.
