Your Future, Your Super
Your Future, Your Super (YFYS) reforms were introduced to ensure Australians are getting the most out of their superannuation. The changes include:
- Reducing the amount of unnecessary fees and insurance premiums paid by many Australians as a result of having multiple superannuation accounts.
- Increasing fund accountability and transparency by introducing a duty for Trustee to act in the best financial interest of the members
- Holding funds to account for underperformance
What’s changing
From November 1, members will be required to assume greater decision-making responsibility for their insurance by only selecting one super fund to use for all future superannuation payments. In the past, employers have been well-placed to decide which fund provides the most appropriate coverage for their employees.
From 1 November, the decision-making will shift from employers and trustees to individual members. When members change employment, they will retain their existing super fund account unless they make an active choice not to. If a new employee does not decide on a new fund, employers are no longer allowed to automatically create a new super account in the employer’s chosen default fund.
How will this change affect the employer?
- If an employee does not nominate an account at the time they start a new job, employers will have to obtain information about the employee’s existing superannuation fund from the ATO.
- The employer will do this by logging onto ATO online services and entering the employee’s details. Once an account has been selected, the employer will pay superannuation contributions into the employee’s account.
- If an employee does not have an existing superannuation account and does not make a decision regarding a fund, the employer will pay the employee’s superannuation into their nominated default superannuation fund
How will this change affect the employee?
- The employee will now be required to only have one active super fund
- The employee will need to provide their existing superannuation account details to their new employer.
- The employee needs to ensure the superfund they keep is the right one for them by using the YourSuper comparison tool to decide which product meets their needs
For more information about these changes visit: