MySuper is bringing big changes to Australian superannuation funds.It is important that business owners are aware of these changes as being non-compliant can have major ramifications.
MySuper is a simple low-cost superannuation product that will replace the current default products and become the new default superannuation fund for businesses. Australia has the fourth largest retirement saving system in the world and as of 30th June 2013 holds $1.6 trillion for retirement. Despite this, the current superannuation system is often complex and difficult for both employers and employees to navigate.
MySuper has been introduced to help simplify and give greater transparency to superannuation systems. MySuper accounts will offer lower fees and simpler features, so members are not paying for services they do not need.
Businesses need to be aware that, from 1st January 2014, they must only pay superannuation contributions to an authorised MySuper fund. Business owners only need to choose a new super fund if their current one is not MySuper authorised, or if they believe the current one is not the right choice for their employees anymore.
Employees are still able to actively select their own fund if they wish, or manage their own superannuation affairs through a self-managed superannuation fund.
All existing superannuation funds will be able to apply to offer a MySuper product. As of mid October 2013 nearly 80 superannuation funds have been granted MySuper authorisation.