The Financial Services Council (FSC) has welcomed the introduction of the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 as it ensures all workers have the option of making an active choice for their super.
FSC chief executive, Sally Loane, said under current laws one million Australians could not choose the super fund their super entitlement was paid to.
“It’s unacceptable that even today, when there is so much pressure on super funds to modernise and be more efficient, a worker can arrive at a new job only to find they must open a new superannuation account with a fund specified in an enterprise agreement – whether they want to or not,” Loane said.
“This is particularly important for the two million Australians working multiple jobs, who may still today find themselves in the position of being required under outdated superannuation laws to have multiple accounts. This erodes their capacity to maximise their super savings.
“We continue to urge the Government to enact the recommendations of the Productivity Commission and Royal Commission and implement a default once system for superannuation so that all Australians can take their super fund with them from job to job, just as they do with bank accounts and tax file numbers.”