Most working Australians and many retirees have super savings, which is a large asset outside of owning their main residence. Super is a significant part of retirement planning and therefore it is important to have an awareness of the main super concepts. These include contributing money during your working life as well as receiving an income stream when you stop working in retirement.

Everyone has different goals when it comes to their financial future including their ideal retirement age, retirement income and estate planning. Understanding how such a substantial asset such as Superannuation works may be a priority no matter what stage of life you are in.

Superannuation is a long term investment, which can be used as a tool to improve your retirement and investment returns so that you don’t have to solely rely on the age pension. As part of providing clients with superannuation advice, we can provide the below insight into the future of your Super when retirement planning.

Treasury Laws Amendment Bill 2021

There has been an important change to Super that has occurred through the recent passing of the Treasury Laws Amendment Bill 2021. This bill partially implements the proposed ‘Superannuation Reform – Your Future, Your Super’ that was announced in the 2020 Federal Budget1. Below is an insight into the changes contained in the Bill, which may be relevant to you and your transition to retirement.

Single Default Account

This part of the Bill limits the creation of multiple Superannuation fund accounts for employees who do not designate a Super fund when they start a new job. If a new employee does not designate a super account to receive contributions, an employer must create one on their behalf. When an individual has multiple existing accounts, consideration will be given to recent activity and account balances.

The Government has stated that this amendment seeks to increase individuals’ savings for retirement by eradicating any unnecessary fees. This amendment applies to employees that initiate employment on or after 1 November 2021.

Super Underperformance

The Government will require superannuation products to meet an annual objective performance test. Those that fail will need to disclose this information to members and will be prevented from taking on new members. Members will be notified by 1 October 2021 if their fund fails this test2 .

Best Financial Interests Duty

This part of the Bill ensures that each trustee of a registered super entity performs the trustee’s duties in the best interest of the beneficiaries. Increasing transparency and accountability of each trustee by strengthening Government obligations. Trustees are required to act in the best financial interest of members and provide clear information regarding the management of members holdings.

This Bill, which has applied from 1 July 2021, aims to increase the accountability of Super trustees and improve the financial future of Australians. Areas of improvement include day to day processes, investing approach for beneficiaries, strategic decisions and discretionary expenditure. To gain a more in depth insight into what these amendments could mean for you, your next step may be to schedule a consultation with Michael at Ethica Private Wealth Specialists.

This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.


1 Unknown, ‘Your Future, Your Super’ Legislation, Ethica Financial Knowledge Centre,

2 Unknown, Superannuation Reforms Pass Parliament, The Minister For Superannuation,