Is your Superannuation deemed as an Inactive Account?
The Protecting Superannuation Bill was passed by parliament in February 2019 and is designed to protect member balances and hold trustees more accountable.
The package introduces a number of changes, including a complete ban on exit fees, a cap on fees for low balance accounts, insurance cancellation for inactive accounts and transferring inactive accounts to the ATO.
Insurance inactivity! - the first stage of these measures
Super funds will be required to cancel members' insurances if contributions haven't been received for over 16 continuous months and the member hasn't opted in to continuing the cover.
What is defined as a contribution?
- employer contributions
- member contributions
- spouse contributions
- internal transfers
- Government Co-Contributions
- Low income tax offset contributions
- Rollovers from other super funds
Will you lose your insurance?
You will lose your insurance if:
- at 1 July 2019, you have over 16 months inactivity on your account
Are there any other impacts?
Super funds are also required to send inactive accounts without insurance and a balance under $6,000 to the ATO as part of the unclaimed super money regulations.
For further information, call your superannuation provider or our office and we can complete a review to determine if you will have your insurance cover impacted by these changes.
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