The Australian Prudential Regulation Authority (APRA) has authorised the first MySuper product since applications were welcomed at the start of the year.
Sunsuper will be authorised to provide a low-cost superannuation product from the reform's start-up date of July 1, now that the regulatory body has approved its application.
"Sunsuper has been authorised to offer a MySuper product from 1 July 2013. This is a very welcome development because it means lower fees for members," the minister for financial services and superannuation, Bill Shorten, said.
"MySuper will provide simple, cost effective default superannuation products, which will provide a significant improvement in the retirement outcomes of ordinary working Australians."
The minister said in a statement that APRA is currently examining other applications and expects to make further authorisations in the coming days.
The news comes after the first MySuper applications were lodged with APRA early last month.
AIST announced that CBus and First Super were the first two industry super funds to sign up to provide the low-cost super products.
The Australian Institute of Superannuation Trustees (AIST), which represents both CBus and First Super, said at the time that it expected a majority of its member funds will follow suit.
"Feedback from our member funds is that most intend to lodge their application in the first few months of this year, so that they have time to go through the process with APRA and are ready for the 1 July start date," said AIST executive manager of policy and research Tom Garcia.
From 1 January 2014 only those products that meet the MySuper standards will be able to accept contributions for employees who have not chosen their super fund.
