Will the July 1 Super changes affect you?
You may have heard that there are changes coming to Superannuation. The Protect Your Super reforms will be effective as at 1st July, 2019
What are these reforms?
- If you have an inactive account (an account that has not received contributions or rollovers for 16 months), the insurance will be cancelled on that account in order to protect the balance
- If you have an inactive account with less than $6,000, the account will be closed and transferred to the ATO. The ATO will attempt to data match these accounts where possible
- If you have an account with less than $6,000, fees will be capped at 3%pa
How will this affect me?
Protecting your Superannuation from fees and eroding over time is most definitely a good thing. However, there are some people that retain accounts so that they may have access to the insurances. If you do not complete an election to retain the insurances, then all insurances will be cancelled and all premiums to date lost.
If you hold an inactive account, you should have received a letter from your Superannuation provider by now. We have acted on many of these letters on behalf of our clients. However, if you have not received the letter or are unsure if you are affected, then time is running out to act and we encourage you to contact our office on 1300 014 368 to ensure you don’t lose access to insurances you wanted to retain.