Super legislation and regulatory update

This update covers new legislation and regulatory developments for the December quarter of the 2024 calendar year.

The Superannuation (Objective) Bill 2023 passed both houses on 28 November 2024.

The law will now define the objective of super as ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way’. Any future changes to super legislation must be judged against this objective – making policymakers more accountable when considering changes that affect Australians’ retirement savings.

APRA has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the September 2024 quarter.

• Total superannuation assets increased by 3.7 per cent over the quarter to reach $4.1 trillion as at September 2024, of which $2.8 trillion are in APRA-regulated funds.
• Total contributions increased by 13.1 per cent to $191.3 billion in the year ending in September 2024.
• Benefit payments increased by 11.4 per cent to $119.9 billion in the year ending in September 2024.

ASIC launched civil proceedings against United Super Pty Ltd, the trustee for Cbus. ASIC alleges extensive delays and processing failures for death benefits and total and permanent disability (TPD) insurance claims.

On 19 November 2024, ASIC published an open letter to CEOs of superannuation trustees urging them to assess their death benefit claims handling practices and address any identified deficiencies.

Emma Rosenzweig, ATO, Deputy Commissioner and Chair of the Payday Super Special Purpose Working Group has given a speech to the ASFA conference on payday super. Payday super is aimed at ensuring more of the $5.1 billion in unpaid SG each year is paid into members’ accounts, improving the retirement income of millions of Australians. This measure requires significant legislative changes, which are being worked on by Treasury.

Read the transcript here.

The ATO has published the annual SG compliance results. Approximately 902,000 employers are reporting super obligations through Single Touch Payroll. Employers are paying more than 92.4% of the SG they are required to, without intervention from us (the ATO). Employers made voluntary disclosures of unpaid super, resulting in around $539 million in SGC liabilities being raised.

Read the ATO’s super guarantee annual employer compliance results for 2023/24.

The Australian Prudential Regulatory Authority (APRA) has released its inaugural publication of the fund level data on expenditure covering a broad range of categories, including investment-related expenses, as well as administration and other expenditure, such as advertising, sponsorship and payments to industrial bodies. 

Find out more here

On 20 November 2024, the Government introduced new legislation requiring large companies to set gender equality targets. There will be new requirements for employers with 500 or more employees. The Bill has been referred to the Senate Finance and Public Administration Legislation Committee.

The Government has made announcements in relation to improving the retirement phase of superannuation, relating to:

• Enhanced independent guidance
• Better retirement products
• Best practice principles
• Increased transparency

The Government has also tasked APRA and ASIC with undertaking a Pulse Check report by the end of 2025, to monitor trustees’ progress in implementing their strategies under the Retirement Income Covenant.

Further consultation with the industry and broader community on the details of these changes will begin in the first half of 2025.

The updated app was rolled out in app stores in mid-November 2024. The app will have a new name and new look, but you’ll continue to use it in the same way.

APRA has published its Annual Report for 2023/24.

ASIC has published its Annual Report for 2023/24.