Policy & Regulation

Exposure Draft Regulations from the Australian Treasury on proposed changes to the Your Future Your Super (YFYS) performance test.

Super funds with a responsible, ethical or sustainable focus will soon be subjected to the same performance test as their ‘default’ MySuper peers, as the Government confirms the extension of these superannuation performance test rules.

Leading Australian financial institutions and finance industry peak bodies have made a joint statement on the Australian Government’s proposed Safeguard Mechanism reforms. As well as finance industry peak bodies ACSI, ASFI, IGCC and RIAA, the joint statement has been signed directly by institutional investors including Aware, Cbus, HESTA, First Sentier, IFM, Metrics, and Ethical Partners. These organisations represent more than 500 investors, banks, insurance firms and financial service providers who collectively hold over USD$29 trillion assets under management. The statement welcomes the Government’s proposal to reform the Safeguard Mechanism, while noting that the emissions reductions required under the Safeguard Mechanism are not yet aligned with the reductions needed to limit global warming to 1.5°. Leading Australian financial institutions and finance industry peak bodies have made a joint statement on the Australian Government’s proposed Safeguard Mechanism reforms. As well as finance industry peak bodies ACSI, ASFI, IGCC and RIAA, the joint statement has been signed directly by institutional investors including Aware, Cbus, HESTA, First Sentier, IFM, Metrics, and Ethical Partners. These organisations represent more than 500 investors, banks, insurance firms and financial service providers who collectively hold over USD$29 trillion assets under management. The statement welcomes the Government’s proposal to reform the Safeguard Mechanism, while noting that the emissions reductions required under the Safeguard Mechanism are not yet aligned with the reductions needed to limit global warming to 1.5°. Therefore, the Safeguard Mechanism should be a floor, not a ceiling, to facilities’ decarbonisation activities.

Proposal from the Australian Government for a legislated objective of superannuation being ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.’

The Australian Prudential Regulation Authority (APRA) renewed expectations of superannuation funds in prudential guidance SPG 530 Investment Governance.

Demonstrating our collective willingness to work together to enable the finance sector to make a larger contribution to the climate, environment and social objectives of Australia, the organisations listed below issue this Joint Statement on Accelerating Sustainable Finance. As leading Australian financial services firms, we recognise our critical role in shaping Australia’s future. Our activities – which include finance and investment, insurance, investor stewardship, client relationships and advice, stakeholder engagement, and policy engagement – can provide significant support for the transition to a net zero, climate resilient Australian economy, the regeneration of Australia’s natural capital, and a more prosperous and fair society. We recognise the important role of strong partnerships between government, the private sector, and other stakeholders in achieving these goals. Private finance and investment alongside government funding is essential to accelerate progress, as is a supportive policy and regulatory environment. Demonstrating our collective willingness to work together to enable the finance sector to make a larger contribution to the climate, environment and social objectives of Australia, the organisations listed below issue this Joint Statement on Accelerating Sustainable Finance. As leading Australian financial services firms, we recognise our critical role in shaping Australia’s future. Our activities – which include finance and investment, insurance, investor stewardship, client relationships and advice, stakeholder engagement, and policy engagement – can provide significant support for the transition to a net zero, climate resilient Australian economy, the regeneration of Australia’s natural capital, and a more prosperous and fair society. We recognise the important role of strong partnerships between government, the private sector, and other stakeholders in achieving these goals. Private finance and investment alongside government funding is essential to accelerate progress, as is a supportive policy and regulatory environment. We welcome the Treasurer’s announcements today of the Australian Government’s plans to drive sustainable finance in Australia.

A number of significant announcements today from the Australian Government show clear recognition of the role of investors in achieving sustainable national economic prosperity, and constitute a huge win for RIAA and its members on issues that we have been advocating on for many years. Australian Treasurer Jim Chalmers has announced a new national sustainable finance strategy, recognising the key role of investors in building a sustainable and prosperous nation.

RIAA’s Human Rights Working Group (HRWG) submission to the review of Australia’s Modern Slavery Act 2018 (MSA) by the Attorney General's Department, which was signed on by 11 active HRWG members and RIAA.

Review of Australia’s Modern Slavery Act 2018 (MSA) by the Attorney General's Department (AGD).

Australian Treasury’s review of the Your Future, Your Super (YFYS) regime.