Today, we are releasing the Retirement Reporting Framework and Best Practice Principles for Superannuation Retirement Income Solutions to deliver on our commitment to uplift the retirement phase of superannuation.
These reforms are all about strengthening the system to deliver the best results for Australians when they retire, as well as when they're working.
Australia's $4.5 trillion superannuation system is entering a critical phase, with more than 2.5 million Australians expected to retire in the next decade.
The reforms will ensure there is as much of a policy and product focus on the retirement phase as there is on the accumulation phase.
They will improve transparency and drive trustees to innovate and deliver better retirement solutions for their members.
This will help Australians retire with more confidence knowing they have access to the right product solutions, information, and strategies to help them make the most of their superannuation.
- The Best Practice Principles set out clear guidance for trustees on the design and delivery of retirement income solutions, to support industry progress towards best practice. They outline the steps funds can take to better understand members, design fit‑for‑purpose solutions, and engage their members on retirement income decisions.
- The Retirement Reporting Framework will collect data on industry progress in the retirement phase of superannuation and drive uplift to member outcomes by creating greater transparency across industry.
The Australian Prudential Regulation Authority (APRA) will collect and publish the data required to give effect to the Framework, providing insights on fund offerings and member outcomes and helping track progress on uplift across the sector.
These measures build on the obligations introduced by the Retirement Income Covenant. They will be reviewed regularly to ensure they remain fit for purpose and reflect evolving industry practice.
Together, these reforms will help Australians achieve higher quality retirement outcomes after a lifetime of saving, consistent with the objective of superannuation.
Labor built the superannuation system, and these reforms build on our work making the system stronger, fairer and more sustainable.
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 boosting the superannuation savings of more than a million low‑income workers, and better targeting tax concessions on large balances.
We've also expanded the Performance Test to more products, legislated to align the financial reporting required of funds with those of public companies, committed to introduce mandatory member service standards, and we're working to improve consumer protections.
The Best Practice Principles for Superannuation Retirement Income Solutions are available on the Treasury website.
