The Government’s Protecting Your Super package – announced in the 2018-19 Budget – is a comprehensive package of regulatory reforms designed to protect Australians’ superannuation savings from undue erosion by fees and insurance premiums.
The Government has released for public consultation exposure draft legislation and explanatory material to implement the package, which contains the following elements:
- A cap on administration and investment fees charged on superannuation accounts with balances of $6,000 or less at 3 per cent of the account balance, in addition to banning superannuation funds from charging exit fees for any account.
- A requirement on superannuation funds to only offer insurance on an opt in basis in relation to accounts:
- that have balances below $6,000;
- of new members who are under 25 years old; or
- that have not received a contribution for 13 months or longer.
- Changes to strengthen the ATO-led consolidation regime by requiring the transfer of all inactive accounts where the balances are below $6,000 to the ATO. The ATO will be given powers to reunite ATO-held accounts with the member’s account where possible.
Treasury received 45 submissions in response to this consultation. Of these submissions, 8 were confidential.
The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.
- Actuaries Institute - PDF 109KB
- American Council of Life Insurers - PDF 70KB
- Association of Superannuation Funds of Australia - PDF 617KB
- Australian Council of Trade Unions - PDF 405KB
- Australian Institute of Superannuation Trustees - PDF 804KB
- AustralianSuper - PDF 133KB
- Berrill and Watson - PDF 401KB
- BT Financial Group - PDF 254KB
- Caulfield, Craig - DOCX 24KB
- Cbus - PDF 573KB
- CHOICE - PDF 506KB
- ClearView - PDF 3MB
- Consumer Action Law Centre - PDF 268KB
- Corporate Super Association - PDF 173KB
- CPA Australia - PDF 86KB
- Energy Industry Superannuation Scheme - PDF 681KB
- Financial Planning Association of Australia - DOCX 62KB
- Financial Services Council - PDF 204KB
- First State Super - PDF 568KB
- First Super - PDF 413KB
- Independent Fund Administrators and Advisers - PDF 390KB
- Industry Super Australia - PDF 2MB
- Inner City Legal Centre - PDF 533KB
- IOOF - DOCX 207KB
- Law Council of Australia - PDF 241KB
- Maurice Blackburn - PDF 317KB
- Mercer - PDF 94KB
- MetLife - PDF 653KB
- Prime Super - DOCX 65KB
- Rest - PDF 84KB
- RGA Reinsurance Company of Australia - PDF 114KB
- RiceWarner - PDF 285KB
- Self Managed Super Fund Association - PDF 135KB
- The Tax Institute - PDF 178KB
- UniSuper - PDF 716KB
- Willis Towers Watson - PDF 216KB
- Women in Super - PDF 172KB