Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, today released his response to the proposals of the Super System Review or Cooper review.
In a report, called Stronger Super, the government said it accepted 139 of the 177 proposals, including the proposal to introduce a MySuper fund.
Superannuation funds will be allowed to provide MySuper products from 1 July 2013.
But not all existing default funds will be required to convert to MySuper products at this date. Existing default funds will transition to MySuper after an appropriate period.
Both the Australian Prudential Regulation Authority (APRA) and ASIC will oversee the two-year transition period of MySuper.
The government will consult with relevant stakeholders on the duration of this transition and other implementation issues.
The government will also determine the types of fees that can be charged on choice products. There will be no entry fees and limits on exit and switching fees.
The proposal that financial advice costs should not be bundled with products as part of the Future of Financial Advice reforms was adopted in principle and the government is consulting on implementation details.
But not all of the Cooper review’s proposals were accepted.
The Australian Taxation Office (ATO) will not be provided with the power to issue binding rulings in relation to self-managed super funds (SMSFs).
Data on SMSF borrowing will not be collected from credit providers, but will be collected directly from SMSFs as part of the ATO’s collection and publication of SMSF data.
The government also said it will not seek to abolish the equal representation for employers and unions on trustee boards of industry funds and will not insist on more independent trustees.
Shorten will announce the government’s response in a press conference later this morning.
