The first of the MySuper licences have been authorised by the Australian Prudential Regulation Authority (APRA), enabling licencees to offer their products from July 1, 2013.
Sunsuper was the first superannuation fund in Australia to receive its licence for Sunsuper for Life, Lifecycle Investment Strategy; Cbus announced its authorisation for Growth (Cbus My Super) shortly after. It has also been reported that Combined Super was authorised as of last week.
The Minister for Financial Services and Superannuation, Bill Shorten, called it a welcome development in a media release, saying it would mean lower fees for members.
“This first authorisation is further evidence of the Gillard government delivering on a major superannuation reform commitment made at the last election.”
As of January 1, 2014, only MySuper products will be able to accept contributions for employees who have not chosen their superannuation fund.
The government says trustees of MySuper products will have a “primary duty to act in the best financial interests of their members”. The government will also restrict unnecessary or excessive fees by limiting fee types.
“The MySuper reforms will lower fees and boost retirement incomes for millions of Australians,” Shorten says.
“MySuper will provide simple, cost-effective default superannuation products, which will provide a significant improvement in the retirement outcomes of ordinary working Australians.”
APRA is currently examining other applications and is expected to make further authorisations in coming days.