The Government made an election commitment to allow the Australian Prudential Regulation Authority (APRA) to consider the religious affiliation of a super fund when applying the annual performance test.
The Government is seeking stakeholder views on exposure draft legislation to adjust how faith‑based superannuation products are treated under the annual performance test.
The legislation seeks to:
- require trustees to apply to APRA for faith‑based product status
- subject faith‑based products to a supplementary test that considers their faith‑based investment strategy, if they fail the original test
- exempt faith‑based products from the consequences of failure if they pass the supplementary test.