“Stronger Super” Reforms on the Horizon

The Government has announced its support for most of the wide-ranging Cooper Super System Review recommendations by releasing a package of reforms known as “Stronger Super”. The proposed reforms feature a new low-cost and simple default superannuation product called “MySuper” which is marked to commence from 1 July 2013.

The Government also supports the Cooper Review’s “SuperStream” proposals. One of the proposals involves extending the use of an individual’s tax file number (TFN) as the primary identifier of member accounts from 1 July 2011. The proposal is said to assist individuals and trustees to locate and consolidate lost accounts. However, a member’s right to not quote a TFN will be maintained.

The Government also agreed with most of the recommendations dealing with self-managed super funds (SMSFs). One proposal is to provide the Tax Office with new powers to issue administrative penalties against SMSF trustees on a sliding scale according to the seriousness of the breach.