Superannuation regulators updates
Treasury updated the group on:
- Payday Super
- Changes to low-income superannuation tax offset, with Treasury publishing a fact sheet outlining the government’s position and planned approach.
- The government has outlined changes to the Better Targeted Superannuation Concessions Bill. Treasury has published a factsheet on the announced changes.
- Performance test review.
- Consultation has occurred on the draft member service standards. The next step is for legislation and/or regulations to be released for public comment.
- Retirement phase reforms continue to be progressed, including a retirement reporting framework and best practice principles for retirement products.
The Australian Prudential Regulation Authority (APRA) updated the group on:
- Governance reforms, including amended proposals on independence, pre-approval and tenure. Further consultation on draft standards and guidance is planned for 2026.
- APRA continues to enhance transparency on fund and industry expenditure, with the next data release expected in December 2025.
- Members were invited to provide feedback on APRA’s strategic plan, particularly regarding balancing regulatory burden and financial system stability.
Australian Securities and Investments Commission (ASIC) has launched its report on public and private markets, with a specific focus on superannuation and the critical stewardship role that super trustees play in shaping market outcomes.
Other items included:
- Reviewing responses to the regulatory simplification consultation, focusing on how stakeholders interact with ASIC and exploring ways to streamline regulatory guidance.
- Participation in Council of Financial Regulators working groups.
- Continued focus on member services. ASIC is following up on improvements to death benefit claims handling this year.
- ASIC has published its thematic review on retirement communications with examples of better practices.
- A joint 'pulse check' survey with APRA on implementation of the Retirement Income Covenant.
The Australian Financial Complaints Authority (AFCA) noted there has been a decline in superannuation complaints for the 2024–25 financial year, to just over 6,000. Complaints about delays dropped by 40%, and death benefit complaints also fell due to regulatory action and improved fund practices.
Most complaints related to account management issues, with smaller volumes for disability, income protection, and pensions.
The Australian Taxation Office (ATO) is well progressed in preparations for Payday Super, which will take effect from 1 July 2026. The current centrepiece is the draft compliance guidance PCG 2025/D5, outlining a risk-based approach for employer compliance in the first year that considers the challenges of implementation. Employers who attempt to comply and resolve issues quickly will be at lower risk of compliance action.
Payday Super requires changes right across the employer and super fund ecosystems. Super funds need to put plans in place now to update systems and processes to:
- Return unallocated employer contributions within 3 business days, down from 20.
- Implement SuperStream v3 changes by 1 July 2026, including better error messaging, faster payments through the new payment platform, and new member verification requests.
- Maintain accurate and timely reporting of member account and transaction data to the ATO through the Member Account Attribute Service and the Member Account Transaction Service (MATS).
The Small Business Superannuation Clearing House (SBSCH) will be closed from 1 July 2026, with new users no longer able to register from 1 October 2025.
Communications for Payday Super will be ramped up utilising existing channels. Supporting videos and white labelled products will be developed for stakeholders and third parties to cross promote.
Other items included:
- The paid parental leave project is on track for a 1 July 2026 start date.
- Superannuation guarantee compliance results outlining compliance actions undertaken for 2024–25 financial year are expected to be published 17 November.
- 2024–25 compassionate release of superannuation data was released on 16 October, showing a significant growth in applications and the amount approved, specifically in relation to dental treatments. Compliance focusing on high-risk behaviours of registered agents and health practitioners is progressing.
- 2024–25 unclaimed super monies (USM) data was released on 28 October, showing an increase consistent with annual trends. The ATO continues to focus on reuniting individuals with lost super and expects that data improvements and Payday Super to help reduce the incidence of multiple accounts and in turn reduce lost accounts that could become future USM.
- Practice statement guidance is being developed regarding penalty and remission principles where employers or super funds fail to comply with event-based reporting obligations such as those that apply for Single Touch Payroll and MATS.
High-risk super switching
ASIC provided an update on its consumer campaign and regulatory work following the collapse of the First Guardian and Shield Master Funds, which have impacted approximately 12,000 customers and over $1 billion in assets. The business model of concern involves advisers encouraging members, often via telemarketing, following click-bait advertising, to switch their super into platform-style products, many of which are high-risk and inappropriate for retirement purposes. The discussion noted:
- AFCA held a webinar for people affected by the First Guardian/Shield collapse, which can be viewed on their website.
- APRA has completed a review of major platform providers and published the findings on its website. The review identified weaker practices in areas of onboarding, ongoing monitoring and remedial action and member transfers.
- Financial Services Council is progressing work on best practice principles, developing guidance and governance principles that cover almost all platform providers.
Roundtable with Rob Heferen
The Commissioner of Taxation, Rob Heferen attended the meeting to discuss key superannuation priorities and to hear from members on issues that are important to them and their clients. Items discussed included:
- Payday Super
- compassionate release of super
- USM.
The Commissioner reaffirmed the ATO’s commitment to implementing its new Vulnerability Framework, acknowledging the challenge of tailoring support at scale.
Members discussed the importance of connected data flows across Common Reporting Standard, USM, and super guarantee compliance to ensure integrity and better member outcomes. Suggestions included leveraging ATO-held data to assist funds in resolving duplicate accounts and improving transparency.
Vulnerability Framework
The ATO has released its Vulnerability Framework, which was published on 21 October, following extensive consultation that included 71 submissions and over 500 pieces of feedback. The framework sets out the ATO’s commitment to supporting people experiencing vulnerability within the tax and super system. It was shaped by input from community advocates, service providers, government and non-government organisations, and stewardship groups.
The focus now moves to practical implementation of the framework’s principles to achieve long-term change. The ATO is considering the feedback it has received through consultation in implementing the principles in the framework and acknowledges that creating meaningful change will take time.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Ben Kelly (Co-chair), Superannuation and Employer Obligations |
|
ATO |
Justin Micale, Superannuation and Employer Obligations |
|
ATO |
Rob Heferen, Commissioner of Taxation |
|
ATO |
Robert Thomson, Individuals and Intermediaries |
|
Actuaries Institute |
Timothy Jenkins |
|
Australian Financial Complaints Authority |
Heather Gray (Co-chair) |
|
Australian Prudential Regulation Authority |
Chanum Torres |
|
Australian Prudential Regulation Authority |
Ian Beckett |
|
Australian Prudential Regulation Authority |
Lilian Martin |
|
Australian Prudential Regulation Authority |
Sarah Nicholson |
|
Australian Securities and Investments Commission |
Nicole Chew |
|
Australian Securities and Investments Commission |
Pippa Lane |
|
Australian Securities and Investments Commission |
Rhys Bollen |
|
Business Council of Australia |
Stephen Kirchner |
|
Chartered Accountants Australia and New Zealand |
Helena Gibson |
|
Financial Services Council |
Kirsten Samuels |
|
Gateway Network Governance Body |
Michelle Bower |
|
Law Council of Australia |
Anne Clarke |
|
MUFG Pension & Retirement Solutions |
Deborah Schembri |
|
SMSF Association |
Mary Simmons |
|
Super Consumers Australia |
Jessica Spence |
|
Super Consumers Australia |
Xavier O'Halloran |
|
Super Members Council of Australia |
Hannah Cole |
|
The Association of Superannuation Funds of Australia |
Julian Cabarrus |
|
The Tax Institute |
Phil Broderick |
|
Treasury |
Lachlan Alvey |
|
Treasury |
Ruth Moore |
|
Treasury |
Sally Greener |
Apologies list
|
Organisation |
Member |
|---|---|
|
Australian Prudential Regulation Authority |
James Douglas |
|
Chartered Accountants Australia and New Zealand |
Tony Negline |
|
COTA Australia |
Patricia Sparrow |
|
Grow Inc |
Adam Gee |
|
Law Council of Australia |
Michael Mathieson |
|
SMSF Association |
Peter Burgess |
|
Treasury |
Brendan McKenna |