Super Alert – 29 August 2025: warning re early access to super, Payday Super update, prudential guidance update
Welcome to the weekly KHQ Super Alert. This week APRA and ASIC released the notes from their CEO roundtable last month in relation to governance, risk and expenditure issues. APRA also published the quarterly superannuation statistics, while the ATO warned individuals against accessing their superannuation early on compassionate ground for non-critical matters.
APRA – Results of the 2025 superannuation performance test
On 29 August 2025, APRA released this year’s results of the annual superannuation performance test for both MySuper products and trustee directed products. Pleasingly, no MySuper products failed the test this year. None of the non-platform trustee directed products failed the performance test either. Out of the 137 platform products that were tested, 7 products failed the performance test, which included 4 products which have failed for a second time and will now be closed to new members.
However, APRA has called out a handful of products that, despite passing the annual performance test, have ‘significantly poor investment performance’ over the 10-year period or ‘significantly higher administration fees’.
Click here for details.
APRA – Notes from CEO roundtable in relation to governance, risk and expenditure issues
On 28 August 2025, APRA published the notes from the superannuation CEO roundtable it hosted jointly with ASIC in July. According to APRA, the key themes discussed were ‘governance and risk oversight, and expenditure practices’. Matters discussed included the following:
- ‘CEOs noted increased business level involvement in risk identification, reporting, and board-level discussions…Boards are increasingly challenging executive teams and demanding clearer insights from risk reporting.’
- ‘CEOs described initiatives to spread risk ownership throughout organisations and promote a ‘speak-up’ culture, supported by behavioural surveys and cultural deep dives to measure impact.’
- ‘APRA clarified that its focus is not on cost reduction but on ensuring that spending decisions are purposeful, transparent, and demonstrably in members’ best financial interests. APRA and ASIC cautioned against rigid interpretations of BFID that may inadvertently hinder member-focused initiatives, including those designed to deliver sustainable services.’
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Workplace relations – NSW superannuation case
On 28 August 2025, the decision known as Superannuation Case 2025 (No 4) [2025] NSWIRComm 1071 was published by the NSW Industrial Relations Commission. The decision is linked to proceedings where the Commission has been asked to consider whether a model superannuation clause should be set for inclusion in industrial awards. See our Super Alert from last week for further background information in relation to these proceedings.
In this latest decision, the Commission finalised the drafting of the new NSW Public Sector and Local Government Employees Minimum Conditions of Employment (Superannuation) Award 2025. The award takes effect from 1 September 2025.
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APRA – Quarterly superannuation statistics released
On 27 August 2025, APRA released the latest quarterly superannuation statistics with data up to 30 June 2025. According to APRA, superannuation assets have grown to $4.3 trillion which is a 9.8% increase from the same time last year.
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ASIC – Corporate plan released for 2025/26
On 27 August 2025, ASIC published its corporate plan for the 2025/26 financial year. Key focus areas in relation to the superannuation industry include:
- consumer education and resources on superannuation and retirement;
- high-risk super switching;
- reviewing member services;
- reviewing financial reports of RSE licensees; and
- improving retirement outcomes.
Click here for details.
ATO – Warning in relation to early access to super for non-critical matters
On 26 August 2025, the ATO published an article titled ‘Separating fact from fiction on accessing your super early’. The ATO warned members about accessing their superannuation on compassionate grounds ‘to pay for non-critical medical procedures or lifestyle expenses’ as it has ‘seen an increase in dodgy advice and misconceptions around when individuals can access their super early’.
The ATO is concerned about the behaviour of some health professionals who are ‘encouraging or advising patients to access their super to pay for health treatments without an Australian Financial Services license…[and] preparing inaccurate medical reports to support patients access their super where they are ineligible, such as for cosmetic purposes’. The ATO warns that there are severe penalties for third parties and members who make false or misleading statements to the ATO.
Click here for details.
ATO – Payday Super update
On 26 August 2025, the ATO published a statement from one of its Deputy Commissioners, Emma Rosenzweig, in relation to the application of the ATO’s corporate plan to the superannuation industry. Ms Rosenzweig notes that ‘the implementation of Payday Super’ is a key reform, and while it is not yet law, it is ‘important super funds understand the updates [the ATO is] making to SuperStream in readiness for Payday Super’.
Further technical and business guidance documents will be published once they become available. The ATO recommends that super funds ‘review these specifications now and begin planning their implementation strategies to ensure compliance by the 1 July 2026 deadline’.
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APRA – Update to prudential guidance
On 25 August 2025, APRA announced that it is proposing to make ‘minor updates’ to some prudential standards and guidance, and is seeking industry feedback in relation to the changes. The only update which is specific to regulated superannuation funds related to CPG 233 Pandemic Planning. APRA is proposing to retire this guidance. This is because the ‘[p]andemic scenario [will] form part of the business continuity planning requirements and testing of the plausible scenarios under CPS 230 Operational Risk Management’.
The consultation period closes on 22 September 2025.
Click here for details.
Legislation – Social security rates registered
On 25 August 2025, the Social Security (Deeming Threshold Rates) Determination 2025 (Cth) was registered on the Federal Register of Legislation. According to the Explanatory Statement, the instrument determines the threshold rates ‘for the purpose of calculating income from financial assets under section 1082 of the Social Security Act 1991’, which is used to determine income support payment rates (regardless of the amount of income an individual is actually earning from an asset). The instrument is effective from 20 September 2025.
Click here for details.
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