Govt pushes to pass new super reforms
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.
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
