Changes proposed for annual super performance test (May 2024 Tax Update)

Relevant For:

People interested in the impact of regulatory changes on super funds with regards to fund performance.

Key Points:

• APRA conducts annual super performance tests to enhance transparency and identify underperforming funds.
• Tests apply to MySuper products since 2021 and were extended to trustee directed products in 2023.
• 80 MySuper products and 805 trustee directed products are evaluated, affecting millions of accounts.
• Failing funds must notify members, and consistent underperformers are closed to new members until improvement.
• Current government reviews suggest modifying the tests to avoid unintended impacts on investment strategies.