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Govt reinforces intention on MySuper advice fees
The Federal Government has reinforced that it intends legislating to prohibit the deduction of advice fees from MySuper accounts.
The Government’s intentions were reinforced by the Assistant Treasurer, Stuart Robert in an address to the SMSF Association conference in Melbourne on Friday where he said the move would represent a part of the Government’s response to the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Robert’s statement came at the same time as he announced that, on the basis of feedback from stakeholders, the Government had decided to extend the arrangements around the work test exemption for those aged between 65 and 74 with total superannuation balances below $300,000.
He said that the Government had decided to allow those who used the work test exemption in the year they turned 65 to access bring-forward arrangements for non-concessional contributions.
“These individuals will be able to make up $300,000 in contributions from after-tax income, providing extra flexibility to get their affairs in order as they prepare for retirement,” Robert said.
He said the change would also align the contribution rules for the work test exemption with those that apply under the work test, make the system simpler to understand for members.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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