Performance test review on the table

Investment Magazine

The Albanese government is expected to consider amending the Your Future Your Super (YFYS) performance test. A review of the test – which was introduced without notice by the previous Morrison government as part of its pandemic budget in October 2020 – is likely to be held within the next 6 to 12 months, according to senior government sources.  The prospect of amendments to the test will be welcomed by the many funds and commentators who believe it has created perverse outcomes in the system, including herding behaviour.

But it falls short of requests for the review to be expedited as part of the government’s productivity agenda heading into the Economic Reform Roundtable later this month. Super industry leaders had ratcheted up lobbying efforts against the test in private with government officials over the past week or so. At an Investor Roundtable hosted by Treasurer Jim Chalmers on 7 August, almost all of the asset manager and asset owner representatives in attendance raised the test as inhibiting the economic potential of the $4 trillion sector, according to sources familiar with the proceedings. 

The rest of this article can be found at investmentmagazine.com.au.