Countdown to super insurance changes: 5 days left to act
Mums and dads at home on parental leave and other Australians taking a break from the workforce only have five days left to check if they’re affected by changes to super and insurance coming into effect on 1 July.
Industry Super Australia Chief Executive Bernie Dean urged Australians to get in touch with their super fund if they were concerned about changes to their insurance and check if they will be affected.
The changes, part of the Federal Government’s Protecting Your Super package, will see the automatic consolidation of all low balance ($6,000 and less), inactive accounts to the ATO, and the cancellation of insurance attached to all super accounts that have been inactive for 16 months or more.
Industry Super Australia Chief Executive Bernie Dean said while the changes should deliver significant boosts to people’s super balances, there were some catches to look out for.
“There are some real positives for people in these changes and we expect to see more money for consumers as multiple accounts are consolidated and insurance on those old accounts cancelled,” Mr Dean said.
“There’s a few catches people should be aware of though, especially the parents or others out there who might have been out of the paid workforce for a while and haven’t had any super contributions.
“Getting insurance through your super can be really cost effective and a good way for people to get covered where they might not otherwise be able to afford it, but it can also see super balances eroded if people are paying for premiums for insurance they don’t need.”
Mr Dean said super funds have been contacting members letting them know about the changes, and how to keep their insurance attached to their account if they want to.
“With only five days to go until the changes kick in, this is one of those times people really need to think about their super and not throw the letter from their fund straight in the bin, or mark the email as spam,” he said.
“Straightening it out is easy – if you decide you do want to continue the insurance cover, just let your super fund know.
“If you’re worried or don’t know if you’ll be affected give your super fund a call. With only five days to go until 1 July it’s vital people get engaged with their super now and don’t put it off to another day.”
