The 2018/19 Federal Budget included a proposal that will alter the rules for personal insurances.
The change that may alter the information contained in this module includes:
1. From 1 July 2019,
- Trustees are prevented from
- charging certain fees and costs exceeding 3% of the balance of a MySuper or choice product annually where the balance of the account is <$6000
- charging exit fees on all superannuation accounts, regardless of a member’s balance
- providing opt-out insurance to members with inactive (have not received a contribution or rollover in the previous 16 months) MySuper or choice accounts, unless a member has directed otherwise
- Trustees are required to transfer inactive low-balance (<$6,000) MySuper or choice accounts to the ATO, and the ATO are required to consolidate amounts that have been paid as unclaimed money into an active superannuation account within 28 days of being matched.
The proposal has been legislated.