The Government has released for public consultation an exposure draft of regulation amendments to repeal the member protection standards in the Superannuation Industry (Supervision) Regulations 1994. This measure will implement a recommendation of the Super System Review.
MySuper fees rules, which are to commence on 1 July 2013, will help protect members from unnecessary fees and charges. The rules will require that all MySuper members be charged fees on the same basis with respect to their MySuper interest. This requirement cannot be met at the same time as the member protection standards, which require fees for small balances to not exceed the investment earnings on the overall account.
Small inactive accounts will be protected from being eroded by fees and charges by being transferred to the ATO. Interest will paid at a rate equivalent to CPI inflation from 1 July 2013. These balances can be reclaimed from the ATO at any time.
This measure will have effect from 1 July 2013.