For the first time since 1993, the Federal Government has announced an overhaul of laws governing superannuation funds.
Designed so that ordinary Australians have more control over their superannuation, these reforms will give the regulator, Australian Prudential Regulation Authority (APRA), more power to intervene in the regulation of superannuation funds.
Many Australians are eroding their super balances by paying duplicate or unnecessary fees for life insurance across several funds. The latest reforms will tackle the compulsory need for life insurance within superannuation packages as well as make it easier for consumers to opt out of these products.
The Federal Government expects the reforms to provide consumers with better choices as well as weed out unlawful behaviour in the banking sector.
“There aren’t enough protections to ensure that superannuation is being managed in the best interests of members,” said Financial Services Minister Kelly O’Dwyer. “The Government is also focussed on making sure that we clean up the scandals that have existed in the banking sector.”
What do you think? Is the Federal Government taking the right steps to protect your super balance? Should the overhaul have gone further?