Performance test review an opportunity to reduce barriers to investment
8 May, 2026 - The Australian Investment Council welcomes the Government’s review of the Your
Future, Your Super (YFYS) performance test as a significant step toward unlocking better returns for workers.
“We welcome the Government taking a closer look at the performance test and the role it plays in shaping investment decisions,” Australian Investment Council CEO, Navleen Prasad said.
“The Council has argued for a number of years that net returns are ultimately what matters for workers and retirees, and there is misalignment in the current test and the types of investment that deliver the best long-term returns alongside strong economic outcomes.
“This is the case we have consistently made at every meeting of the Treasurer’s Investor Roundtable, and we thank the Government for listening to this feedback.”
The consultation paper seeks to take a pragmatic approach to a complex problem and trying to deliver a level of specificity with options that will garner community support.
The Council will review the proposed changes through the lens of whether it reduces barriers for investing in certain parts of the economy and delivers better investment outcomes for workers.
Ms Prasad said: “Our research shows that young workers could benefit from up to $20,300 extra in their accounts at retirement if superannuation funds could deploy a further $54 billion into start-ups and growth companies. That’s the equivalent of increasing the Superannuation Guarantee Contribution from 12% to 12.5% at no cost to employees or Government.”
“Removing the regulatory barnacles standing in the way of this outcome makes good, budget neutral, sense.”
The Council notes a key factor in delivering better returns for workers and doubling the capital that can be put to work into start-ups and growth companies is ASIC’s full review of RG 97 which has been brought forward to FY27.
“We look forward to consulting with Treasury to evolve the performance test so that it works in members’ best financial interest,” Ms Prasad said.