The federal government will introduce changes to income streams drawn from superannuation as part of reforms it will make to the retirement phase of the compulsory savings system, but has not released specific details as yet.
The reforms were announced by Treasurer Jim Chalmers in a speech to the Association of Superannuation Funds of Australia (ASFA) national conference in Sydney today and will focus on products, guidance and practice principles.
In regards to retirement income streams, Chalmers said: “We are improving the innovative income stream regulations and supporting more innovation in retirement products.
“These changes will allow funds to offer product features that members want, such as money-back guarantees and instalment payments instead of an upfront lump sum.”
No further details were provided by Chalmers, but the updated regulations have been scheduled to commence from 1 July 2026 and consultation on the changes would take place prior to this date.
As part of the product reform, best practice principles would also be put in place around the provision of the new income stream offerings.
“A new set of voluntary best practice principles will guide the superannuation industry in designing modern, high‑quality income products that support Australians’ financial security in retirement. Consultation on draft principles to begin in 2025,” Chalmers said.
The government would also expand and update content on the Moneysmart website so retirees had greater access to independent, reliable information on superannuation and retirement options, he said.
He also addressed the issue of transparency around retirement outcomes, announcing the creation of a new reporting framework that will commence from 2027 and monitor outcomes for members in retirement in a consistent and transparent way.
“The Australian Prudential Regulation Authority (APRA) will collect and publish data on an annual basis so progress can be measured over time. The design of metrics and process will be informed by Treasury‑led consultation from next year,” he said.
“The government has also tasked APRA and ASIC (Australian Securities and Investments Commission) with undertaking a Pulse Check report by the end of 2025 to monitor trustees’ progress in implementing their strategies under the Retirement Income Covenant.”
ASFA chief executive Mary Delahunty welcomed the proposed plans for improving consumer education and guidance around superannuation and retirement.
“Improving consumer education is key to helping Australians make informed decisions about their retirement. Clearer guidance and tools like Moneysmart will empower fund members to engage more actively with their super, ultimately leading to better retirement outcomes,” Delahunty said.
“Super funds have shouldered a lot of the responsibility for educating Australians – we welcome an increased effort from the government in this area because it is so important in helping people make good decisions.”
Financial Services Council chief executive Blake Briggs also welcomed the announcement, but noted retirement needs varied for each person and new products had to take that into account.
“As these principles are developed, it is important they recognise the range of consumers’ needs in retirement and diversity of retirement products. For Australians, no two retirements are the same,” Briggs said.
“Product features are only one aspect of ensuring good retirement outcomes. A good offering should also encompass the services the fund offers, such as guidance and financial advice, and how the fund’s service levels deliver for customers.”
