Your Future, Your Super



‘Your Future, Your Super’: an explainer



Paul Watson, Group Executive, Member Experience



You may have heard talk in the news about changes to super, including terms like ‘stapling’, performance tests and comparison tools. They’re all part of the Your Future, Your Super (YFYS) package that the Federal Government has introduced.

What is it and why was it introduced?

The Government introduced these changes with the aim of improving super for everyone by:

  • making sure your super fund follows you if you change jobs
  • measuring funds on their performance
  • providing a tool to help you choose the right fund for you, and
  • ensuring that super funds always act in your best financial interests.

So how will my super fund follow me?

Stapling means  your super fund will automatically move with you if you change jobs – effectively being  ‘stapled’ to you.

Under the previous system, your super was usually paid into the fund your employer chose for you (called their ‘default’ fund). So, if you’ve changed jobs, it’s likely that you’ve had a new account opened for you with a different super fund each time.

With the new stapling system, the fund that’s currently receiving your super contributions will be the one that follows you when you change jobs, unless you tell your employer otherwise.

Read more about stapling 

Annual performance test for super funds

All super funds now undergo an annual performance test which measures the net investment returns of MySuper products (like our default Balanced investment option) against benchmarks. Funds that fail the test two years in a row will need to take steps to address their performance issues before they sign up any new members to their MySuper product.

We’re pleased to report that we've passed the inaugural MySuper performance test conducted by the Australian Prudential Regulatory Authority (APRA). The test places greater emphasis on a fund’s longer-term results. Our MySuper Balanced option has been ranked by independent researcher SuperRatings as one of the top 3 default options over rolling 5, 7, 10, 15 and 20-year periods¹.

YourSuper comparison tool

Another measure that was introduced is a YourSuper comparison tool on the Australian Taxation Office (ATO) website, where you can compare your super fund’s performance to other funds.

The great news is that as a Hostplus member, you’re already in one of the top-performing funds with a history of strong long-term returns.

Read more about the YourSuper comparison tool

Funds should always act in your best financial interests

As part of the YFYS package, all super funds are required to act in the best financial interests of their members, something Hostplus has always done.

We’re well placed to meet these requirements, which includes providing you with clearer information in our annual reports and at annual member meetings about how we manage your retirement savings.

Want more detail?

The Government’s put together a publication explaining all the ins and outs of YFYS – you’ll find it at treasury.gov.au. You can also read the legislation in detail at the Federal Register of Legislation, including the regulations around stapling, and around super fund underperformance.

We’re here to help

If you have any questions about these changes, or about your super, contact us online or call us on 1300 467 875.

¹ Source: SuperRatings Accumulation Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, 30 June 2021.