The Government has announced several proposed changes for the Your Future, Your Super performance test, which it will consult on.
In a media release on Tuesday, the Minister for Financial Services said the proposed changes will address “several unintended consequences” of the test.
The key updates included:
- Prospectively increasing the testing period from eight to ten years to encourage longer‑term investment decisions;
- Calibrating key benchmarks to ensure that funds are not unintentionally discouraged from investing in certain assets;
- Adjustments to the notification letter that trustees of failed products send to members;
- Minor changes to improve accuracy and reduce administrative burden for APRA; and
- Ensuring the test is fit‑for‑purpose when it is extended to trustee‑directed products this year.
Consultation on the draft regulations is open until 2 May 2023 and updates will be implemented prior to the August 2023 performance test.
The Government said it is committed to stapling, the eradication of unintended duplicate accounts.