Super funds praise delay to efficiency shake-up
The Australian Prudential Regulation Authority said on Friday that super funds would not be required to report their progress with the changes until October next year.
The changes, called SuperStream, are designed to improve the "back office" of superannuation and cut costs. They will allow super fund members to track their accounts through an online portal and consolidate accounts electronically and require funds to establish standardised forms.
Cheques for super payments will be progressively phased out, in favour of online payments.
John Brogden, chief executive of the Financial Services Council, said APRA's decision was "practical and sensible given the substantial number of reforms the industry is yet to implement".
"We support measuring the efficiency benefits of SuperStream over time as we believe it will increase the efficiency and cost effectiveness of the industry," he said.
The Association of Superannuation Funds of Australia said it was "pleased that APRA has indicated that they will consult with industry over the coming months".
The delay would "enable the industry to design and implement the collection and reporting of the relevant data", the association said.
Tom Garcia, CEO of the Australian Institute of Superannuation Trustees, said the body was "very pleased that APRA has listened to industry concerns".
"The whole industry is working with the regulator to ensure that the SuperStream reforms are implemented as smoothly as possible and deliver significant savings to members," he said.
Frequently Asked Questions about this Article…
APRA has delayed the requirement for super funds to report their progress on SuperStream changes — funds will not be required to report until October next year, after industry concerns they could not meet the September quarter deadline.
The deferral followed concerns from superannuation industry groups that they could not meet the original September quarter deadline. APRA said it would consult with industry and give funds more time to implement the reforms.
SuperStream is a set of reforms designed to improve the ‘back office’ of superannuation and cut costs. The changes introduce standardised forms, online portals for members to track accounts, and electronic account consolidation to streamline administration.
Under SuperStream, cheques for super payments will be progressively phased out and replaced with online payments, moving the industry toward more efficient electronic payment processes.
Yes. SuperStream is intended to let members track their accounts via an online portal and consolidate multiple accounts electronically, supported by standardised forms to make the process smoother.
Industry groups welcomed the delay. John Brogden of the Financial Services Council called APRA’s decision practical and sensible, while ASFA said it was pleased APRA will consult with industry and that the delay will help design and implement the required data collection and reporting.
Industry bodies say they expect SuperStream to increase the efficiency and cost-effectiveness of the superannuation industry and to deliver significant savings to members, and they support measuring those efficiency benefits over time.
Investors should watch for APRA’s consultations with industry over the coming months, funds’ progress on implementing SuperStream systems, and the October next year reporting milestone when funds will need to report on their progress.
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