As of 1 July 2019, the Federal Government’s new laws regarding superannuation came into effect.
The new legislation, known as the Protecting Your Super Package Act, affects members of certain superannuation funds where no contributions have been received for more than 16 months by cancelling their death and disability insurance automatically – unless certain steps are taken by the member.
In addition, if the fund has had no contributions for more than 16 months, and the total balance is under $6,000, the funds will be paid to the Australian tax office, and if possible, moved to an active superannuation fund or otherwise paid to the member directly.
In the event that your total and permanent disablement insurance and/or income protection insurance is cancelled because of the above changes to the law, you may still be covered as long as you had insurance when you became ill or injured and ceased work as a result.
How do I keep my automatic insurance through my superannuation fund?
After 1 July 2019, we recommend that you take the following steps to keep any automatic insurance coverage you have through your superannuation:
- having $6,000 or more in your superannuation account;
- making contributions to your account every 16 months if you do not have an employer making regular contributions; or
- contacting your superannuation fund and advising them that you would like to opt in for insurance cover.
In addition, we recommend that you seek expert advice from a financial adviser to check that your current insurance policies meets your needs.