POWERED BY MOMENTUM MEDIA
Lawyers back PC on insurance inside super
Specialist superannuation and insurance law firm, Berrill Watson has welcomed the fact the Productivity Commission (PC) has stopped short of backing the Federal Budget move to remove insurance from account balances under $6,000.
Berrill Watson principal, Paul Watson said that his firm welcomed the draft PC report, and particularly that insurance in superannuation presents good value for money for most super fund members.
“The report states that insurance should only be included in active accounts to protect members from unnecessary account balance erosion,” he said. “Significantly, the report does not recommend removing insurance for account balances under $6,000 as has been proposed in the Federal Budget.”
Watson said that removing insurance for all accounts under $6,000 meant that all new super fund members would have no insurance cover at all, sometimes for upwards of two years, when the reality was that death and disability could strike at any time.
“This proposed change from the Budget would leave low income and vulnerable workers (migrants, single mothers, Indigenous Australians and casual workers) without insurance,” he said. “In addition, removing such a large number of people from the pool would mean higher premiums for everyone else.”
Watson said his firm welcomed the fact the PC report had recommended making insurance opt-in for people under 25.
“We agree with removing death cover for people under age 25, but still have some concerns that people under age 25 are vulnerable without insurance cover for disability,” he said.
Recommended for you
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
