The Morrison Government is delivering on its commitment to put the interests of superannuation members first. From 1 July 2019, new measures will further protect hard-earned superannuation savings.
Commencing on 1 July, the Protecting Your Superannuation Act will safeguard Australians’ superannuation savings from excessive fees, unnecessary insurance and the costs of inadvertently holding multiple superannuation accounts.
The new legislation:
- Caps fees on balances less than $6,000.
- Bans exit fees, so members can switch funds should they choose.
- Empowers the Australian Taxation Office to consolidate inactive low-balance accounts automatically.
- Makes insurance opt-in for inactive accounts – dormant for 16 months or longer.
The Morrison Government recognises that insurance through superannuation is valuable for many Australians. However, where accounts are inactive, the cost involved often causes inactive accounts to be eroded to zero – for cover that members do not know they have, or on which they cannot claim.
Under the new measures, members will only pay for insurance on an inactive account with their consent.
All funds are required to notify every member who will be affected by this change. If a member then wishes to retain insurance cover, all they need to do is contact their fund to opt in.
The Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator the Hon Jane Hume, said, “These changes are helping millions of Australians save billions of dollars in fees and charges.
“The Coalition is helping Australians build more superannuation savings for their retirement – part of the Morrison Government’s plan for a stronger economy.”
