The Financial Services Royal Commission launched an inquiry into the “Misconduct in the Banking, Superannuation and Financial Service Industry“. Throughout this report, the commission made several recommendations to improve this industry’s transparency and conduct. The two you should know about include:
- Implementing a dedicated supervisory body separate from the government and
- That stagnant superannuation accounts stop being charged insurance premiums.
Superannuation changes – What you need to know
The government has recently introduced changes to address the second recommendation. After successfully passing the bill, superannuation works on an ‘opt-in’ rather than an ‘opt-out’ basis for specific members. Your super will work on this ‘opt-in’ basis if you are under 25 or have a balance below $6000. This change is designed to help if you are a young, casual or part-time worker. But be aware if your insurance doesn’t work on an ‘opt-in’ basis, your super may be at risk of erosion.
Is Your Super Eroding Right Now?
Despite the superannuation changes, you will pay multiple insurance premiums if you have more than one super account. These premiums will erode your dormant accounts until you have a balance of less than $6000. Yet, paying multiple insurance premiums provides little benefit to you over a singular insurance policy, even when making an insurance claim.
While tidying up these accounts, however, you will likely encounter repeated barriers even after the inquiry into superannuation misconduct.
In one case, a career-ending injury stopped someone from working who had seven superannuation accounts. This person began consolidating (rolling over) these accounts into one for ease of access. His approved lawyer then contacted the super funds only to be met with constant barriers and refusal to communicate. Only by complaining to the Australian Financial Complaints Authority (AFCA) did the superannuation companies assist the claim process.
How Our Insurance Claim Lawyers Help
At Splatt Lawyers, we genuinely care about your legal rights and are committed to providing superior service. For this reason, we offer no-win, no-fee funding to you can access justice. People choose our skilled personal injury legal team for their superannuation claims based on our expertise spanning more than 28 years and our 99% success rate. Know how we might help you by Calling 1800 700 125.