Australia's corporate watchdog has announced a significant change to how superannuation funds are advertised to new employees, with a ban set to take effect from July 1, 2026. The Australian Securities and Investments Commission (ASIC) will enforce the new rules, which aim to help workers make more informed decisions about their superannuation.
What the Ban Entails
The ban will restrict advertising during the employee onboarding process. Only the company's default fund, the employee's existing stapled fund, and select MySuper products that meet specific requirements will be allowed to be advertised. Currently, onboarding platforms often display multiple competitive super funds, sometimes with deals that place certain funds in more prominent positions.
Under the new rules, any MySuper product advertised must have passed the Annual Superannuation Performance Test and must not be related to the person or company advertising the product. Additionally, the advertiser must request the employee's stapled fund details and provide them when possible.
ASIC's Enforcement Approach
In a statement on Tuesday, ASIC confirmed it would begin enforcing the ban from July 1, 2026. However, the watchdog acknowledged that entities need time to adapt, stating that for a 12-month period from July 1, it will take a balanced approach to enforcement. This means companies will have some leeway as they build the necessary capabilities.
The ban has been introduced to address long-standing criticisms that advertising during onboarding leads to uninformed financial decisions and the creation of duplicate super accounts. It does not apply to general advertising to the public outside of the onboarding process.
Industry Reaction
When the legislation was first introduced in parliament last year, Association of Superannuation Funds of Australia (ASFA) CEO Mary Delahunty welcomed the changes. She noted that starting a new job is a rare moment when many people think about their super, and the new rules will provide clear, comparable information to help them choose the best option for their needs. She described the package as measured, supporting choice, competition, and performance while improving outcomes for members.
Aussie workers can expect to see changes in how super funds are presented to them, with the goal of fostering better decision-making and reducing the risk of duplicate accounts.
