The superannuation performance test has led to better results for super fund members, with most under-performing funds merging with better-performing ones, and other funds lowering their fees. Members of super funds that failed the first round of the test in 2021 have since had a 20 per cent cut in the fees they pay, saving them more than $100 million in fees. The objective nature of the test was critical to achieving these benefits and must be protected. 

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In order to protect these benefits, there should be a high bar for change. In the absence of compelling evidence that a new method would achieve the same or better results for members, the government should retain the status quo. 

Too many Australians have already suffered poor outcomes in superannuation for far too long. Maintaining the integrity of the Your Future, Your Super performance test will help ensure fewer Australians suffer that fate in future.

Joey Moloney

Housing and Economic Security Deputy Program Director
Joey Moloney is the Deputy Program Director of Grattan Institute’s Housing and Economic Security program. He has worked at the Productivity Commission and the Commonwealth Treasury, with a focus on the superannuation system and retirement income policy.