25 Jun Act NOW on Superannuation Reforms!
More than three million Australians are at risk of financial ruin if they attempt to claim on insurance policies in superannuation after July 1 – only to find out they have been switched off under the Protecting Your Super package.
Under new laws that come into effect from July 1, fund members’ default insurance will be cancelled if their superannuation accounts are inactive – unless they elect to “opt-in” and retain the insurance, or reactivate the account.
The new rules are part of the federal government’s “Protecting Your Super” reforms, whereby life cover will be stopped on super accounts that have not received a contribution for at least 16 months.
This is especially problematic for people who have been overseas for an extended period, on parental leave or unemployed and have not had contributions going into their funds.
You should have heard from your super fund by now if you will be affected by the reforms, however if you’re not sure we strongly recommend calling your super fund(s) to find out.
If you rely on your insurance through super then ACT NOW by getting in touch with your super fund so you don’t lose your valuable benefits.
There are also further reforms such super funds with a balance of less than $6,000 being transferred to the Australian Taxation Office. The ATO will then use data matching to connect these super accounts with an active account of the member where possible.
For more information on how the reforms might affect you or someone you know please visit www.timetocheck.com.au