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An update on the Royal Commission and some recent superannuation legislation changes.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recently released its Final Report. The report made 76 recommendations and both major political parties have said they will support the recommendations.
We also support the report’s recommendations because we believe they will improve Australia’s financial services industry for the benefit of all Australians. We are already implementing many of the super related recommendations and are working constructively with industry regulators on the other recommendations.
New legislation has been passed by Parliament which is designed to protect people’s super. Many of the new measures were part of the 2018/19 Federal Budget’s ‘Protecting Your Super Package’ and relate to fees, lost member accounts and insurance arrangements. Other measures were recommendations from the recent Royal Commission report.
Some of the recent changes include:
Capped fees and low balance accounts
Changes to insurance
If you have an account that is considered ‘inactive’ insurance must not continue unless you specifically opt in to retain your insurance cover. An inactive account is one that has not received a contribution (including a rollover) for the past 16 months.
As new regulations are passed we will keep you informed regarding the details of the changes and how they affect you.
If you have any questions, please contact your financial adviser. If you don’t have a financial adviser, please contact us and we will put you in touch with one.