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.
You can submit responses to this consultation up until 29 May 2018.
Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
How to respond
Address written submissions to:
Manager, Regulatory Framework Unit
Retirement Income Policy Division
Parkes ACT 2600