CareSuper clarifies recent media coverage

Industry news
19 November 2021

You may have seen recent media reports regarding the potential impact of new legislation that will affect all profit-to-member super funds from January 2022.

Under the new legislation, if a super fund’s trustee company (which is responsible for governing the fund) becomes liable for a penalty under any Commonwealth Law or pays an infringement notice, the money cannot be paid from the super fund and the trustee company will become liable for such payments.

While CareSuper’s trustee company is not facing any penalties, we want to ensure our current and future members are protected from the potential impact of this legislation.

That’s why, like many other profit-to-member funds, we’re proposing to transfer a portion of CareSuper’s assets to a newly created reserve account held by the trustee company that would be used in the event of any future penalties. We believe this is the best way to protect our members’ interests, and so we’ve sought advice from the Supreme Court of Victoria on our approach. We’ll be writing to you with more details in the coming weeks.

In the meantime, please be assured that CareSuper is in good financial health and we’ve built strong reserves. The Trustee is committed to meeting its legal obligations and upholds a high standard of Governance.  More information about our financial and governance practices is available on the Governance section of our website.

As an Industry SuperFund with over 35 years’ experience looking after our members’ super, we are committed to acting only in your best interests.

If you have any questions, please get in touch.