Almost half of the super system may could be exempt from a crucial government performance test that would reveal to workers if their fund is a dud, new analysis from Industry Super Australia (ISA) shows.
An eyewatering estimated $881 billion in retirement savings belonging to 8.4 million member accounts or about 47% of the APRA regulated system could be exempt from the government’s new Your Future, Your Super performance benchmarks.
And there is no timeframe for performance tests to be applied to three quarters of the nearly $1.13 trillion in assets not in MySuper.
Failing the critical benchmark test means members are warned about a fund’s poor performance, a second consecutive strike bars the fund from accepting new members.
Among those currently out of the test are notorious dud investment products whose poor performance and fee gouging Banking Royal commissioner Kenneth Hayne savaged in his final report.