Treasury Laws Amendment (Your Future, Your Super - Addressing Underperformance in Superannuation) Regulations 2021 (F2021L01077)

Schedule 1   Amendments

Superannuation Industry (Supervision) Regulations 1994

6   After Schedule 2

Insert:

Schedule 2A - Information in notice under subsection 60E(2) of Act

Note: See subregulation 9AB.19(2).

Hello [insert the name of the beneficiary of the superannuation entity],

Your superannuation product [insert the name of the superannuation entity and the name of the Part 6A product] has performed poorly under an annual performance test that was introduced by the Australian Government to make sure Australians are getting the most out of their super. As a result, we are required to write to you and suggest that you consider moving your money into a different superannuation product.

You currently have $[insert the beneficiary's account balance on the date of this letter] invested with [insert the name of the superannuation entity]. In the last year you paid $[insert total fees and costs charged to beneficiary in previous financial year] in total fees and costs for your account with [insert the name of the superannuation entity].

Switching to a different super product is easy, and there are no fees involved.

By switching into a better performing product, you can potentially save thousands of dollars more for retirement. For example, by earning 1% higher net return over a 30-year period, you could be 20% better off at retirement.

Using the Australian Government's YourSuper comparison tool you will be able to compare the fees and returns of all MySuper products. Go to ato.gov.au/yoursuper or the QR code below:

[insert QR code for ato.gov.au/yoursuper]

Your questions answered

Why have I received this letter?

The Australian Government has introduced an annual performance test of superannuation products to make sure Australians are getting the most out of their super.

The purpose of this letter is to notify you of the poor performance of your superannuation product and to provide you with information to help you decide whether you want to stay with your current product or choose a better performing product.

Even a small difference in performance can make a big difference at retirement.

What is the annual performance test?

The annual performance test assesses the returns of your product (after your super fund deducts fees) over the last [insert the number of financial years in the lookback period for the Part 6A product] years. The test compares the returns your product delivered with the returns that a comparable product would have delivered over the same period.

Products that fail this test are required to notify their members.

You can find out more about superannuation at moneysmart.gov.au.