Superannuation trustees and directors who fail to act in the best interests of their members could be fined as much as $500,000 or jailed for five years under new laws that have cleared federal parliament.
Trustees will also need to assess annually whether their products are delivering financially for their members.
The laws, aimed at improving outcomes for superannuation members, passed the House of Representatives on Thursday.
That comes after they cleared the Senate in February, with amendments from Labor.
The changes also ramp up powers for the Australian Prudential Regulation Authority.
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Assistant Treasurer Stuart Robert said the changes act on two recommendations of the damning banking royal commission and mark a significant shift in the superannuation sector.
"It must prioritise delivering outcomes for members," he told parliament on Thursday.
