MySuper is part of the Stronger Super[1] reforms announced in September 2011 by the Gillard Labor government for the Australian superannuation industry to replace the previous default funds system with a new default system using low cost and simple superannuation products. MySuper compliant products may be provided by industry super funds, as well as retail super funds. Funds that do not operate as default funds, such as self managed superannuation funds (SMSFs) or choice products, are not subject to MySuper standards.
Since 1 January 2014, unless an employee has chosen another investment option, employers must pay all compulsory SG contributions into approved MySuper accounts, i.e., into super products that have received a MySuper authority. From that date, super funds must also credit employer contributions to a MySuper account, unless if the member has directed the trustee to do otherwise. Given that over 75% of employees stay with their employers’ default fund, it was expected that the majority of employees would be in a MySuper product from that date. Superannuation funds had until 1 July 2017 to move existing default members into a complying MySuper product. For convenience, many funds simply converted an existing default option to a MySuper account, so that members would be automatically included in a MySuper product.
Members can opt out of the MySuper option at any time, or may choose a particular MySuper product. They must be given a minimum of 90 days' notice before a default transfer to a MySuper account is made.
The intention of the MySuper system is for market participants to create a range of easily comparable, relatively simple products, which in turn will focus competition on net costs and returns. The Australian Prudential Regulation Authority (APRA) fosters competition by publishing fee tables and other statistics.[2]