Australian Super Fund Gigsuper Enters Liquidation: What It Means For Members

GigSuper Liquidation Summary

In a surprising move, GigSuper, a fund aimed at self-employed Australians, has entered liquidation. This decision came after the board concluded it was the best course of action given their financial difficulties. Members of GigSuper are currently being notified of the steps ahead, which could include transferring their super to another fund.

The fund was originally designed to cater to gig economy workers, freelancers, and other self-employed individuals. It provided them a flexible way to manage their superannuation. This niche market, however, proved tougher to maintain than anticipated. GigSuper faced significant challenges in scaling their business and achieving financial sustainability.

Administrators have been appointed to oversee the liquidation process. They will prioritize safeguarding the interests and assets of GigSuper members. During this period, members’ funds will continue to be protected under the usual superannuation safeguards. Despite entering liquidation, the fund remains committed to minimizing disruption for its members.

Many in the industry were caught off guard by the announcement. It has sparked discussions about the viability and future of niche superannuation funds. GigSuper’s closure highlights the inherent risks of running a specialized fund in a competitive market. The administrators will be working diligently to facilitate a smooth transition for members.

There’s a broader question now about the structural challenges faced by funds that target specific employment sectors. Other funds in the same space will likely be reviewing their strategies moving forward. Overall, the focus for GigSuper now is to ensure that its members are well taken care of during the liquidation phase.

Read the full story by: Super Review