Key Documents
The Annual Superannuation Performance Test (the test) was introduced as one of four Your Future, Your Super measures. It was introduced to protect Australians’ retirement savings by holding trustees to account for the investment performance they deliver and the fees they charge to members.
The test has applied to MySuper products since 1 July 2021 and to Trustee‑Directed Products (TDPs), a subset of the choice accumulation sector, since 1 July 2023.
The test has improved member returns by holding trustees to account for investment performance and encouraging continual improvement or exit of poor performing products. However, there is evidence that the test may be influencing investment decisions to the detriment of member outcomes, including discouraging investment in asset classes that may otherwise be in the best financial interests of members.
The purpose of this paper is to canvass a range of options for reforming the test, should the government decide to do so in the future. In considering improvements to the performance test, the government is focused on ensuring the test holds trustees to account for delivering the best financial outcomes for members.
All interested parties are encouraged to provide input on the consultation paper by 19 April 2024.