Employment Hero CEO Ben Thompson has voiced concerns over the federal government’s proposed partial ban on superannuation advertising, arguing it could “reduce competition and limit choice” for Australian workers.
The government, however, insists the reforms will enhance employee choice and prevent workers from losing hundreds of millions in unnecessary fees.
The Proposed Changes
Unveiled by Assistant Treasurer Stephen Jones last Friday, the draft legislation includes:
✅ Aligning superannuation guarantee payments with employee wages (payday super).
✅ A partial ban on super fund advertising during employee onboarding.
If passed, the changes would limit HR platforms and onboarding software to highlighting only:
- An employer’s default super fund,
- The employee’s existing ‘stapled’ super fund, and
- MySuper funds that pass annual performance tests.
The government argues that reducing advertising during onboarding will prevent workers from being pressured into poor financial decisions and inadvertently opening duplicate accounts. Treasury estimates this policy could save employees between $20 million and $167 million per year in unnecessary fees.
Industry Pushback
Employment Hero, which generates revenue from super fund advertising during onboarding, is one of the platforms that would be affected.
Thompson supports payday super but warns that limiting advertising to a select few funds could increase costs for other providers and restrict consumer choice.
“This could reduce competition and limit choice, which ultimately isn’t good for workers,” he said.
SuperAPI co-founder Ben Styles echoed these concerns, arguing that banning non-MySuper products would stifle competition and disadvantage Australians seeking better super options.
Consumer Advocacy Groups Weigh In
Not all stakeholders are against the ban. Super Consumers Australia deputy CEO Katrina Ellis believes the proposal is a step in the right direction but argues it doesn’t go far enough.
“We remain concerned that there is not a complete ban on this advertising,” Ellis said. “It is not in workers’ best interests to have their employment monetised.”
What’s Next?
If legislated, the reforms will take effect on July 1, 2026. The government is currently seeking feedback until April 11, allowing industry stakeholders and consumers to share their views before the bill is tabled in Parliament.
