Industry fund concern at insurance changes

9 July 2019
| By Mike |
image
image
expand image

The Federal Government’s reintroduced legislation aimed at changing the rules around insurance inside superannuation is too blunt with time-frames that are too short, according to industry superannuation funds representative body, the Australian Institute of Superannuation Trustees (AIST).

The Government late last week reintroduced the Treasury Laws Amendment (Putting Members’ Interest First) Bill to the Parliament – something which would see insurance inside superannuation made opt-in for those with super balances below $6,000 or aged under 25.

The legislation represented a reintroduction of legislation which was subject to amendment in the Senate before the 18 May Federal Election.

AIST head of advocacy, Ailsa Goodwin, said the organisation was ramping up its advocacy because of its concerns about the implications of the legislation.

“We support the intent of this legislation to protect some members – such as young people – from paying for insurance they may not need. But the legislation is too blunt and the timeframe is too short,” she said.

“Unfortunately, younger people in risky occupations do get injured and do make claims. The legislation needs to contain exemptions for super funds with members in this category,” Goodwin said.

Backing the AIST’s concerns around the Government’s unrealistic time line, Goodwin said that if the industry did not have adequate time to deal with the changes then members would suffer.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 1 month ago
Kevin Gorman

Super director remuneration ...

1 year 1 month ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 1 month ago

Global X believes the yellow metal could soar as high as US$3,000 this year, with market flows leading the charge....

3 days 20 hours ago

While Australian companies could face starkly different climate-related reporting regimes depending on which way the election swings, a sustainable investment specialist ...

3 days 20 hours ago

The Association of Superannuation Funds of Australia (ASFA) is calling on the federal government to focus on measures in the upcoming budget that will improve fairness fo...

3 days 20 hours ago

TOP PERFORMING FUNDS