The Your Future, Your Super (YFYS) measure has recently passed both Houses of Parliament and will be in effect as of 1 July 2021 with the stapling and benchmarking measures coming into effect on 1 November 2021.
Here's a summary of the changes:
- Employers will be 'stapled' to their first super fund, meaning they will automatically keep their existing super fund when they change jobs, unless they explicitly choose to join another fund
- Funds will face an annual performance test run by the Australian Prudential Regulatory Authority (APRA) and stop under performing funds from taking new members
- The ATO will host an online comparison tool called YourSuper allowing employees to rank funds against each other on fees and performance
- Best Financial Interests Duty measure which will ensure that all super fund expenditure is in the interests of members
For DSPs, the key points from these changes are that:
- No employer default fund can be used from 1 November 2021. If no choice fund is elected, the employer must interact with the ATO to obtain the individuals 'stapled' fund
- From 1 November 2021, the ATO will offer a retail service to employers to obtain this information via the Business Portal (this is a manual process)
- From 1 July 2022, it's expected that DSPs will have access to an integrated API 'stapling' service to obtain this information (phase 2)
DSPANZ are currently engaged with the ATO in the development of the administrative design to support Phase 2 of these changes. More information will be provided to members as the ATO releases updated documentation. Outcomes from the inaugural YFYS working group held on 20 May are now available through Online Services for DSPs.