Australia: A Seat at the Table–What Does the Government’s Economic Reform Roundtable Mean for Superannuation Fund Trustees?

By: Ravi Jayemanne, Ben Kneebush, and Thais Fernandes (Graduate)

From 18–21 August 2025, the Australian Government (Government) hosted the Economic Reform Roundtable with industry and government leaders to explore reforms aimed at boosting productivity, resilience, and budget sustainability.

Although closed to the public, Treasurer Jim Chalmers outlined 10 core reform directions in his closing press conference. Several of these will be of particular interest to the superannuation industry.

“Tell Us Once” Legislation

The Government has begun work on “tell us once” legislation, enabling super funds to report information once rather than to multiple regulators. The Association of Superannuation Funds of Australia (ASFA) estimates overlapping reporting obligations have driven compliance costs from AU$550 million in 2017–18 to over AU$1 billion in 2024–25. A regulatory reform bill is expected to be introduced this year.

Superannuation Performance Test

The Government will review the superannuation performance test, which is intended to improve fund performance and transparency. The latest results showed only 37 out of 563 products failed. The Australian Prudential Regulation Authority (APRA) Deputy Chair Margaret Cole has noted the test has helped reduce underperformance since its 2021 introduction.

However, the test has faced criticism for discouraging diversification and long-term strategies. Now nearly five years old, the Government acknowledges it needs updating to remain fit for purpose. Whilst Treasurer Chalmers indicated reforms will aim to remove barriers to diversification and investment in national priorities like housing, infrastructure, and clean energy, he also emphasised the test will not be abolished, and any reforms will not compromise the objective of super funds to maximise member returns. Consultation plans are yet to be announced.

Other Reform Directions

Trustees will also want to keep a close eye on developments in other reform areas highlighted by Treasurer Chalmers, as the direction taken may have significant implications for strategic planning and initiatives, including in priority areas like investment strategy setting, risk management, product and services development, and member engagement.

• Capital Attraction and Deployment: The Government has signalled a focus on creating an environment conducive to long-term investment. Many in the industry are hopeful that this means there will be real policy changes that lead to greater opportunities in infrastructure, housing, and clean energy projects, as well as regulatory adjustments to streamline approvals and reduce barriers for institutional investors.
• Regulatory Simplification: Beyond “tell us once,” it is hoped that there will be further engagement to identify and eliminate unnecessary regulatory burdens. ASIC’s 3 September 2025 Regulatory Simplification report supports this direction.
• Housing and National Projects: The Treasurer highlighted accelerating housing approvals and clearing backlogs in environmental approvals. This may lead to increased opportunities for superannuation funds to invest in housing and related infrastructure, and policy support for institutional participation in the build-to-rent sector.
• AI as a National Priority: AI and digital infrastructure have emerged as key sectors for capital deployment and operational efficiency. Unsurprisingly, the roundtable identified AI as a national priority. The hope is that the reforms will provide greater policy support for innovation and tech investment in Australia, whilst appropriately managing risks.

Conclusion

The roundtable has set the stage for legislative action on reporting simplification, performance test reform, and broader regulatory and tax settings to unlock superannuation’s potential as domestic capital. The challenge now for the Government is implementing reforms that reduce costs, enhance flexibility, and allow capital to flow into productive investments—while staying true to the core objective of delivering strong retirement outcomes.