Did you know the Government recently introduced reforms to protect your superannuation savings from undue fees and premiums?
– Superannuation funds with a balance of under $6,000 that are inactive for a period of six (6) months will be automatically consolidated;
– Fees will be capped to 3% p.a. for accounts with balances under $6,000 at year end;
– You’ll be able to switch super funds without paying an exit fee; and
– Insurance funded by superannuation will be cancelled if the super account has been inactive for a period of sixteen (16) months or more unless
the member chooses to opt in.
What you need to do:
– If you have a super fund with a balance under $6,000 you need to consider your options in relation to maintaining or rolling over the funds in the account.
– If you have a regular contribution1 (including an annual rollover from an external super fund) being made into the super fund that holds your insurance, you don’t need to do anything. Your super account and the linked insurance will remain active by default.
– If you do not have a regular contribution1 (including an annual rollover from an external super fund) being made into the super fund that holds your insurance, you will need to opt in to keep the insurance active, or set up a regular contribution to ensure your insurance is kept active, before 1 July 2019. Each insurer has their own process for opting in, but it usually involves you sending them an email or a form telling them to maintain your insurance policies.
If you are not sure which of these options apply to you, or if you have concerns about personal insurance in general, now is the perfect time to call us to discuss on 4926 2699.
1. A “regular contribution” is defined as a contribution or rollover being received by the super fund at least once during every sixteen (16) month period.