Understanding
Your Future,
Your Super

The Your Future, Your Super reforms aim to reduce the creation of duplicate accounts when workers start new jobs. From 1 November 2021, new employees will be ‘stapled’ to their existing super fund, unless they choose a different fund. First-time entrants to the workforce will be ‘stapled’ to the first super fund they join. This may be a fund they have explicitly chosen, or the default fund used by their first employer. This account will then follow them from job to job unless they actively choose another fund. 

Employers still need to meet their super choice obligations by offering choice of fund to eligible employees by providing a super choice form. Where a new employee chooses their own fund, this will override the stapling provisions, and super must be paid to the employee’s chosen fund.  The updated ATO Superannuation Standard Choice form can be found in the 'Helpful resources for employers' section below.

If the new employee does not choose a fund for their super to be paid into, employers will need to check with the ATO for an existing stapled fund. If the employee has a stapled fund, super must be paid into that identified fund. 

Another measure central to the legislation is the introduction of an annual performance test for super funds. The test measures the net investment returns of MySuper products against benchmarks and will have ramifications for underperforming super funds. 

Hostplus is pleased to report that we have passed the industry regulator’s latest MySuper performance test. 

The changes have also introduced a Best Financial Interests Duty (BFID) that requires all super fund trustees to perform their duties and exercise their powers in the best financial interests of fund members.

The tool has been developed by the Australian Tax Office and is based on independent information from the Australian Prudential Regulatory Authority, known as APRA . The YourSuper comparison tool ranks MySuper products based on the competitiveness of their fees and investment returns. It’s important to note that the investment returns shown in the comparison tool are net of all fees and taxes, which means fees have already been accounted for when looking at the net performance figure for each product.