From 1 July 2019, new arrangements to protect your super balance from erosion by inappropriate insurance and fees will apply:
- cancellation of insurance: super funds will cancel insurance on accounts that haven’t received contributions for at least 16 months. Your fund will contact you if your insurance is about to end. If you want to keep the insurance through your super, you must tell your super fund or make a contribution to that account. You may want to keep your insurance if you don’t have any through another fund or insurer and you have a particular need for it (e.g. you have children or other dependants or work in a high-risk job).
- no exit fees: there are no exit fees if you leave your super fund.
- fee limit on low-balance accounts: annual administration and investment fees can’t exceed 3% of the balance of accounts with less than $6,000. Your account balance is calculated at the end of the fund year.
- inactive account transfers to ATO: accounts with less than $6,000 that are inactive for 16 months will be transferred to the ATO. The ATO will merge it with your other active super account. If you don’t have another active account, the ATO will keep your super safe.
Get financial advice
Planning for your retirement is complex and it’s important to get advice from people with specialist knowledge. See financial advice for more information on how you can maximise your retirement savings.
It’s never too early to start thinking about your super. Take steps now to get the retirement lifestyle you want.