Currently savers are allocated a new super fund each time they start a job unless they choose one of their own and each fund has its own flat fee. But under new “stapling” rules, savers will keep the same fund when they change jobs. The Australian Prudential Regulation Authority will also compile a list of funds that perform badly and they will have to tell their members they are on the list. They will also be banned from signing up new members. In most cases it is expected the bad funds will have to merge with better managed funds to stay afloat. APRA will have to take care to compare funds fairly on an apples-for-apples basis. Some super funds which invest in things such as toll roads and gas pipelines that yield good returns over time have expressed concern that if the league tables measure performance over too short a time it will reduce the supply of patient capital. The budget also imposes a broad duty on super funds to act in the best financial interests of members. If this makes super trusts think carefully about expenditure it could help reduce fees. Industry Super Australia, a lobby group representing
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