The Australian superannuation landscape faces a period of potential stability following Labor's federal election victory last weekend. After years of policy uncertainty, the sector now anticipates a more consistent regulatory environment, though significant challenges remain. Major funds continue strategic repositioning with key leadership changes at Cbus and Aware Super, while investment strategies adapt to evolving global economic conditions. Meanwhile, regulatory developments and intensifying debates around retirement advice responsibilities between superannuation funds and financial advisers signal ongoing industry transformation in the post-election environment.
Labor's election victory has been cautiously welcomed by the superannuation industry, with many stakeholders hoping for a period of policy stability after years of contentious debate. Prime Minister Albanese's re-election potentially "ends the super wars for now," allowing the industry to focus on implementation rather than defending against fundamental policy shifts. However, industry experts caution that significant work remains to address structural issues in retirement income policy.
The concept of superannuation preservation itself has become increasingly politicised, with analysis from Professional Planner suggesting preservation is becoming a "populist pariah" across the political spectrum. This shift represents a fundamental challenge to the retirement system's architecture and warrants careful monitoring by industry stakeholders.
Industry groups have articulated clear priorities for the re-elected government, with both superannuation and advice sectors calling for regulatory stability, continued focus on retirement income adequacy, and balanced implementation of advice reforms. The Financial Advice Association Australia (FAAA) has taken a strong stance on limiting superannuation funds' involvement in retirement planning, signalling continued tension around advice provision.
Major personnel changes continue to reshape the superannuation landscape, with Cbus appointing a new Chief Investment Officer and announcing plans to manage 50% of investments in-house – a significant strategic shift for the construction industry fund. Meanwhile, Aware Super has commenced a global search for a new CIO following indications that incumbent Damian Graham is planning his departure after seven years in the role.
On the investment front, AustralianSuper has expanded its global equities capability by adding a new international manager to its portfolio, reinforcing the continued push by Australian funds into global markets. Economic outlook assessments remain cautiously optimistic, with UniSuper's analysis suggesting US recession fears may be overblown, noting that current market pricing doesn't fully reflect recession risks.
In the sustainability space, Aware Super has strengthened its environmental commitments through new initiatives aimed at enhancing its responsible investment approach, aligning with growing member expectations for climate-conscious investment strategies.
The Australian Securities and Investments Commission has launched a new portal for Australian Financial Services Licensees, streamlining compliance processes and enhancing digital interaction between the regulator and industry participants. This development comes as APRA levy costs to superannuation have increased by 147% over a decade, raising concerns about the growing regulatory burden on the sector.
Member service improvements are evident across the industry, with REST detailing an internal program to reform death benefit processes, addressing a historically complex area of fund administration. Meanwhile, industry debate continues around appropriate billing practices, with calls to avoid collectively billing fund members who receive external advice.
The FAAA has taken a firm position on proposed advice reforms, pushing back on intrafund advice expansion in the Draft Better Financial Outcomes bill and urging reversal of ASIC's approach on intrafund advice. The association has also called for simplified financial advice rules, highlighting tensions between different advice models in the evolving regulatory framework.
On the litigation front, AMP faces a 2019 superannuation class action, adding to ongoing legal challenges in the sector and potentially establishing important precedents for fund governance and member communications.
The post-election environment offers potential policy stability for superannuation, but significant challenges remain. Over the next three months, industry participants should:
In the medium term (3-12 months), the industry should anticipate further regulatory refinement as the Labor government implements its superannuation agenda, with preservation policy and retirement income framework adjustments likely to dominate industry discussions. The growing regulatory cost burden will continue pressuring operational efficiency, while Australia's strong financial services job growth suggests continued competition for talent across the sector.