EXPLANATORY STATEMENT

Issued by authority of the Minister for Financial Services and Superannuation

Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012

Proclamation

Subsection 2(1) of the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012 (the Act) provides that items 3 to 14 of Schedule 1 to the Act commence on a single day to be fixed by proclamation.  The Act received the Royal Assent on 28 November 2012.

The Proclamation fixed 1 January 2013 as the day on which items 3 to 14 of Schedule 1 to the Act commence.

The Act implements key aspects of the Government’s MySuper reforms.  MySuper products will be simple and cost‑effective products sharing common characteristics, which will replace existing default superannuation products.

Items 3 to 10 of Schedule 1 to the Act amend the Superannuation Industry (Supervision) Act 1993 to allow registrable superannuation entity licensees to apply to the Australian Prudential Regulation Authority (APRA) for authorisation to offer a MySuper product.  These items define a MySuper product, set out rules on the payment of contributions and account transfers for MySuper products, and set out the fees that can be charged and the legislative basis on which those fees can be charged.

Items 11 to 14 of Schedule 1 to the Act provide for application and transitional provisions.  Item 12 provides that a registrable superannuation entity licensee will only be authorised to offer a MySuper product from 1 July 2013.

The commencement date provides APRA with a reasonable timeframe in which to accept and process application forms for authorisation to offer a MySuper product in advance of the 1 July 2013 date from when authorised licensees will be able to offer their MySuper products.