Morningstar & SuperAPI unite to enhance Aussie super use

Morningstar Australasia and SuperAPI have announced a partnership to enhance how Australians interact with their superannuation as they begin new careers.

With the collaboration, Morningstar will integrate its investment research into SuperAPI's digital platform, allowing employees to access more comprehensive data when making choices about their superannuation funds. Both employees and employers stand to benefit from this initiative, especially as it aligns with upcoming Treasury regulations such as the Payday Super laws, which require superannuation contributions to be made at every pay cycle starting from July 2026.

This integration aims to address the issue of many Australians having multiple superannuation accounts, often unknowingly. Presently, 20% of Australians find themselves with more than one super fund, leading to an annual loss of approximately AUD $100 million in fees. The tool provided by SuperAPI seeks to mitigate this, promoting informed decisions and reducing unwarranted administrative costs.

SuperAPI CEO and co-founder Riley James commented, "ABS data shows 2.9 million Australians started a new job last year. For many, this marks their first experience with employment and superannuation, especially younger Australians or those new to the country. SuperAPI's digital solution and Morningstar's insights aim to make that experience clearer and less overwhelming."

The integration will also enable employees to select a superannuation fund that aligns best with their financial goals and personal values, such as investment in specific industries or products.

Peter Bryant, Managing Director, Enterprise at Morningstar Australia & New Zealand, highlighted this aspect, "Morningstar can help employees understand how fund investments have performed, and how they compare against peers. We can also highlight attributes about the companies held within member portfolios that may be important to them, like exposure to particular industries and specific products like thermal coal, tobacco, and gambling."

Furthermore, Treasury reforms that focus on enhancing the superannuation system's efficiency and prompting funds to engage more digitally with their members are supported by this partnership. Such reforms also encourage the consolidation of accounts to avoid duplicate fees. SuperAPI's platform will aid in automating these compliance processes while making super contributions easier for employers. This complements Morningstar's objective to enhance transparency and operational efficiency in the super industry.

James emphasized the opportunity to enhance systemic efficiencies, "The inefficiencies in today's system are exactly what we're addressing. We're leveraging government investments in Super Stream, SuperMatch, and the ATO's Super Stapling API to deliver systemic improvements in efficiency while maintaining a choice framework that benefits businesses, super funds, and members alike."

He also noted the alignment in goals between the two organisations, "Morningstar's commitment to the Australian superannuation sector, combined with its global reach and extensive track record in providing valuable benchmarks for helping investors choose investments, aligns with our own aspirations both here in Australia and, in time, offshore jurisdictions."

In closing, Bryant stated, "Morningstar is collaborating with SuperAPI to improve efficiency for employers while helping employees stay informed and engaged with their retirement savings. SuperAPI's commitment to best-in-class technology, workflows, and a seamless superannuation experience in the workplace aligns with Morningstar's mission to empower investor success."