The Federal Government has made a key concession on insurance inside superannuation for low balance members and those aged under 25 – allowing different arrangements for those working in high-risk occupations.
The assistant treasurer, Stuart Robert told the Association of Superannuation Funds of Australia (ASFA) conference in Adelaide today that the Government had agreed to an amendment following representation from a number of superannuation funds.
He said the amendment would see young or low balance members working in high-risk occupations not needing to opt-in, with the occupations deemed high-risk yet to be decided.
However, Robert made clear that the Government would not be delivering further concessions on the insurance inside superannuation changes, noting that its objective was to address the ongoing erosion of balances via fees and insurance premiums.
Comments
How on earth is it ok for these Industry Funds to put policies in place without getting permission from the client? Its bizarre. But I could cop this under one condition. Every dollar of commission, kick-back or other profit should be returned to the member who has the policy in place as a rebate or reduced premium. Not one cent of remuneration should be allowed to cross-subsidise their other activities. Otherwise, these funds have an incentive to rort this loophole.
Industry Funds they say (ha ha) don't pay commissions - but they sure take commissions -conflicted?
Industry Funds don't take commissions and even if they did, it would come off the operating cost and flow through in lower fees. It's just a fact of that kind of model - it is what it is. No great mystery there as far as I can tell.
What I find weird is this high risk job exception - it's a good start but 'youth' is high risk - not just the jobs - so why do some young people get insurance and others don't? If a young adult injures themselves in Bali on holidays and works in an office they aren't insured but if they work on a building worksite (presumably more risky), they are covered?
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