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Budget 2020-21

Increasing accountability and transparency

Section: 1.6

1.6 Increasing accountability and transparency

In the federal budget 2020-21, the government announced that it will aim to will ensure superannuation trustees are more accountable and transparent as to how they are managing the retirement savings of their members.

By 1 July 2021:

  • Super trustees will be required to comply with a new duty to act in the best financial interests of members     
  • Trustees must demonstrate that there was a reasonable basis to support their actions being consistent with members' best financial interests
  • Trustees will provide members with key information regarding how they manage and spend their money in advance of Annual Members' Meetings.

The treasurer stated that Australians will have an extra $1.1 billion in retirement savings due to reducing waste in the super system through more transparency and accountability over 10 years

The new best financial interests duty means trustees will be more accountable for their actions and better focused on maximising members' retirement savings.

The reforms to Annual Members' meetings will give members more information and a better understanding of the operation of their super fund.

Source:Budget Factsheet 2020-21

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Last modified: Monday, May 3, 2021