New laws designed to protect superannuation accounts from being unnecessarily eroded by fees and insurance premiums will come into account from 1 July.
The Protecting Your Super laws are particularly relevant for accounts that have a low balance or have been inactive for a certain period.
One of the new measures relates to automatic cancellation of insurance cover for inactive super accounts.
These rules prevent super funds from providing insurance cover to you if your super account is inactive, unless you specifically elect to keep your cover.
Under these rules, an account will be considered ‘inactive’ if it has received no contributions or rollovers for 16 consecutive months.
For more information on the Protecting Your Super legislation and how it might impact you, phone one of our Pascoes Accounting & Advisory offices in West Perth (6323 7400), Bunbury (9792 1300) or Kojonup (9831 2000) or visit the Australian Government’s treasury website here.
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