Superannuation reform
The Government announced that it will provide $159.6 million over four years from 2020-21 to implement reforms to superannuation.

The reforms, which will reduce the number of duplicate accounts held by employees as a result of changes in employment and prevent new members joining underperforming funds, include:

• the ATO developing systems so that new employees will be able to select a superannuation product from a table of MySuper products through the YourSuper portal
• existing superannuation accounts will be ‘stapled’ to a member to avoid the creation of a new account when changing employment
• the Australian Prudential Regulation Authority will conduct benchmarking tests on the performance of MySuper products.

Products that have underperformed over two consecutive annual tests will be prohibited from receiving new members until a further annual test that shows they are no longer underperforming.

Insolvency reform
The Government announced changes to enable more small businesses to quickly restructure with proposed changes to start on 1 January 2021.

The proposed permanent changes include:
• Flexibility to allow eligible small businesses to restructure their existing debts while remaining in control of their business
• The introduction of a small business restructuring practitioner, subject to a creditor vote, to develop a restructuring plan for eligible small business.
• Access to simpler and faster liquidation pathways at a lower cost.