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‘Protecting your super’ government reforms

In a move to implement key superannuation reforms designed to protect individual Superannuation members, the Federal Government has passed the Treasury Laws Amendment (Protecting Superannuation Package) Act 2019. The Act introduces the following changes that may impact you:

If you have an ‘inactive’ super account (which has not received a contribution or rollover for 16 months and you have not elected to keep your insurance), then any insurance cover contained in your super will be cancelled from 1 July 2019. To avoid your insurance being cancelled, you must notify your superannuation fund before 28 June 2019 or make a contribution or rollover by 28 June 2019. Some superannuation providers may indeed act sooner so please don’t delay.

Please note: making a contribution to your super account ‘resets’ the 16-month window, whilst completing the relevant form provided by your super fund is an enduring election to keep the insurance. You may have already received (or soon will receive) a communication from your superannuation Trustee informing you of this legislative change with details on how to keep your insurance cover by completing a form and/or make a contribution into your super account.

Your Action Now

  • Notify your Superannuation fund and/or make a contribution. Your Superannuation provider will provide you with a form to fill out, OR access to an online portal to confirm your selection.
  • Contact your Superannuation provider to change or cancel your insurance cover inside your Superannuation.

Information sourced from Austbrokers Financial Solutions (ABFS), May 2019.