Treasury has released exposure draft legislation and explanatory material to implement the “Protecting Your Super” package which contains a number of reforms that are designed to protect superannuation savings from erosion by fees and insurance premiums. The package contains the following elements:
- A cap on administration and investment fees charged on superannuation accounts with balances of $6,000 or less
- Banning superannuation funds from charging exit fees for any account
- A requirement on superannuation funds to only offer insurance on an opt-in basis in relation to accounts that have balances below $6,000, new members who are under 25 years old, or that have not received a contribution for 13 months or longer
- Changes to strengthen the consolidation regime by requiring the transfer of all inactive accounts where the balances are below $6,000 to the ATO.
The reforms are based on recent findings that a large number of taxpayers with low value superannuation accounts were subject to disproportionately high fees and insurance premiums which added little value to their superannuation. The reforms are intended to complement the existing range of superannuation consolidation powers available to the ATO.
To find out more about the information of aspects that you have concerns with, please contact Tax Ideas Accountants & Advisers…http://taxideas.com.au/booking/ Tel: (02) 8318 1545