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.”

Related News:

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.




Related Content

Govt announces TPB review

The Federal Government has initiated a review of the Tax Practitioners Board (TPB) which will look at both standards and professional and ethical cond...Read more

More change ahead for superannuation governance

The Australian Prudential Regulation Authority (APRA) has warned that, while the 2013 prudential framework has led to some improved practices across t...Read more

Certainty needed on super policy

Ahead of tomorrow night’s Federal Budget, a leading financial advisory firm has warned that both economic and political uncertainty could have long-...Read more

Author

Comments

Add new comment