Superannuation is money regularly put into a fund that will be paid to the employee as a pension when they retire. Since 1 July 2014, employers must put a minimum of 9.5 per cent of each eligible employee’s earnings into a super fund (or retirement savings account). The 9.5 per cent rate will remain until 30 June 2021.

Contributor

Paul Bingham

Barrister

Regulation of funds

Last updated

1 July 2020

Almost all private sector superannuation funds are regulated by the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SIS Act’). These are called regulated funds. Funds operated by Commonwealth, state and local government bodies, and by public sector bodies established by statute, are often not regulated. Funds with less than five members (exempt funds) are exempt from many of the regulatory requirements.

The SIS Act (and many statutes controlling public sector bodies) controls the way in which trustees exercise their power. For example, it ensures that each regulated fund trustee must covenant to perform the trustee’s duties and exercise the trustee’s powers in the best interests of the beneficiaries.

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