MySuper

MySuper is part of the Stronger Super reforms announced in 2011 by the Julia Gillard-led government for the Australian superannuation industry. From 1 January 2014, employers must only pay default superannuation contributions to an authorised MySuper product. Given that the majority of employees do not deviate from their employers default fund, it is expected that the majority of Australians would be in a MySuper product from this date.

A MySuper product is one which complies to a regulated set of features, including:

The intention of the MySuper legislation is for market participants to create a range of easily comparable, relatively simple products, which in turn will focus competition on net costs and returns. The Australian Prudential Regulation Authority (APRA) will foster this competition by publishing fee tables for example.

Superannuation funds have until 2017 to move existing default customers into a complying MySuper product, though many funds are simply renaming their existing default option, so that their existing customers are automatically included in a MySuper product. Customers must be given an opportunity to opt out of MySuper, with a minimum of 90 days' notice before the transfer.

After 1 January 2014, members who do not make an investment choice, or who actively choose a fund's default option, must be invested in a complying MySuper product.

On 14 February 2013, Sunsuper was announced as the first superannuation fund in Australia to be awarded a MySuper authority. The Minister for Financial Services and Superannuation Bill Shorten said he congratulated Sunsuper for being an industry leader. It is estimated that Sunsuper spent 2,000 hours preparing their MySuper authority application, which would indicate why Sunsuper was the first fund to be granted approval.

On 20 February 2013, Cbus was announced as the second fund to receive an authority,. A complete list of MySuper authorities is listed on the APRA website. APRA anticipates that fewer than 120 MySuper authorities will be granted in total by the mandatory start date of 1 January 2014, which has been revised down from earlier estimates.

The URL www.mysuper.com.au is registered to OnePath Australia Limited.

As at 6 January 2014, 115 funds have been granted their MySuper authorisation:

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