Govt pushes to pass new super reforms

10 January 2019
| By Anastasia Santoreneos |
image
image
expand image

The Coalition Government has called on the senate to pass its Protecting Your Super Package (PYSP) and latest Member Outcomes legislation as industry superannuation funds continue on their growth trajectory.

Assistant treasurer, Stuart Robert, said under the PYSP, the Government would cap fees at three per cent for low balance accounts ($6,000 and under), which it estimates would save around seven million Australians approximately $570 million in the first year alone.

“We're also banning exit fees, removing the disincentive to account consolidation,” he said. “This measure will save low-income earners, working mothers, students as well as causal and part-time employees from erosion of fees.”

The PYSP would also make insurance an opt-in choice for people under 25 years, people with low balance and members with inactive accounts, which the Government estimates would save Australians $3 billion in insurance premiums.

Robert said inactive accounts without a contribution for 13 months or longer would be returned to existing accounts, which would reunite around four million people with lost superannuation.

“The Government is increasing choice of funds for Australians and closing loopholes letting some employers reduce their Superannuation Guarantee contributions that people who salary sacrifice,” he said.

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

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. ...

7 months ago
Kevin Gorman

Super director remuneration ...

7 months 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 ...

7 months 1 week ago

New analysis has found an industry fund and two corporate funds have topped the list....

2 days 22 hours ago

Brighter Super’s default option has exceeded its seven-year performance, according to its latest financial year results. ...

3 days ago

The $70 billion fund has seen double-digit returns for the majority of members in its lifecycle default product. ...

3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Ardea Diversified Bond F
144.00 3 y p.a(%)
3
Hills International
63.39 3 y p.a(%)