In an effort to accommodate “the size and significance of the sector”, the government’s proposed reforms will see super funds required to prepare and lodge audited financial reports for each financial year and half-year with ASIC, as well as publish the financial report, directors’ report and auditor’s report on their website and provide a copy to members.
It comes after it was reported that super entities with more than four members had a combined value of $2.1 trillion while the value of all listed companies in Australia at that time was $2.3 trillion.
“While super funds are required to provide financial information and data to the Australian Prudential Regulation Authority, there is currently no requirement to prepare financial reports in accordance with Australian Accounting Standards and for these reports to be lodged on the public record,” a statement released by minister for superannuation, Jane Hume, read.
“This results in a lack of transparency, accountability and regulatory oversight unsuited to the compulsory nature of superannuation.”
Consultation on the reforms is open now and closes on 8 September.