Last week parliament pushed through four pieces of legislation, which completes its latest reform on the industry.
The Super Guarantee will increase from 9 per cent to 9.25 per cent from Monday, eventually climbing to 12 per cent by 2012.
While financial advisers will have to adhere to new rules which will make them have to work in the best interests of their clients. It will be mandatory for financial advisers to clearly explain their fees, and banish hidden commissions on financial advice.
The Financial Services Council says the sector isn't ready for such reform, and is trying to convince the government to delay its implementation by another year, although it seems unlikely.
Superannuation funds meanwhile, are expected to return 14 per cent this financial year, according to Chant West.
It's the best performance since the start of the global financial crisis.
Self-managed super funds are continuing to balloon in popularity, with around $14billion a year moving from industry or employer superannuation funds, into SMSFs.
An SMSF allows people to control their own investments for their retirement, and like all investment strategies, it has its pros and cons.
Almost one million Australians now use SMSFs, but is it right for you?
I spoke with Integra Financial Services adviser Deborah Kent, and superannuation expert and Chant West director, Warren Chant.
*Always get professional financial advice before making any financial decision to make sure it is right for you.
