The Albanese Government is taking action to raise the bar for member service in superannuation by introducing mandatory and enforceable service standards for all large APRA‑regulated superannuation funds.
These reforms are all about strengthening the superannuation system by improving member outcomes.
The new standards will improve how funds engage with their members and put member interests at the heart of service delivery.
Superannuation is a powerhouse of prosperity for Australians. With a $4.1 trillion system delivering strong returns, workers are retiring with an average balance of over $200,000.
The Government is ensuring that the same high standards Australians expect in investment performance also apply to member service.
While most funds offer services that meet or often surpass community expectations, there have been some areas where some funds have fallen short.
The new standards will initially target critical areas where complaints data shows the greatest need for improvement, such as:
- The timely and compassionate handling of death benefits;
- Fair and efficient processing of insurance claims; and
- Clear, respectful and accessible communications with members.
Better service is especially important during sensitive and vulnerable moments in members' lives.
Super funds have a responsibility to support members or their beneficiaries during these times, not add to their stress.
Treasury will work closely with consumer advocates, regulators and industry stakeholders to develop the standards. Draft standards will be released for public consultation.
This reform aligns with the newly legislated objective of superannuation: "to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way."
It also complements the Government's retirement phase of super reforms and the Delivering Better Financial Outcomes package, which are about ensuring Australians receive better advice and information, improved products and greater transparency.
With this reform, the Albanese Government is making sure the superannuation system not only delivers financial security for retirement but does so with fairness and dignity for members along the way.
