On 1 July 2019, the government’s Protecting Your Super package introduces new laws designed to protect members from paying unnecessary fees and insurance premiums.
If you have multiple superannuation accounts or superannuation accounts which are deemed to be inactive, you may have received a super insurance election form from your fund recently. Inactive super accounts are those which have not received super contributions for at least 16 months.
From 1 July 2019, under the new “Protecting your Super” reforms, super funds will cancel insurance on inactive account. If you have an affected account your super fund would have contacted you.
If you want to keep the insurance on your inactive account, you must inform your super fund or make a contribution to that account. This change is effective 1 July 2019 and if your super fund does not receive your instruction to retain the insurance or a contribution the insurance cover will be cancelled. In addition, if your super balance is less than $6,000 it will be transferred to the Australian Taxation Office.
Super and Insurance can be quite complicated and sometimes you just want to know that you’re on the right track. Making the right decisions about your super can make a real difference to your financial future. If you are unsure as to whether to keep your insurance within super, please contact our office today on 02 6813 0977 so we can give you comfort of knowing you’re making the right decisions.