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 regulations and explanatory material to implement the package, which contains the following elements:
- Further detail on when a trustee must notify a member that:
- their account has been inactive and that insurance may no longer be offered or maintained without a direction from the member;
- where the member has directed the trustee to take out or maintain their insurance coverage, how the member can cancel their insurance; and
- the information that must be included in those notices;
- additional detail needed to administer the fee cap including the percentage of the cap; and
- rules to direct the Commissioner as to which fund an amount should be paid to when consolidating amounts held by the Commissioner and the member has more than one active fund.