The Financial Services Royal Commission launched an inquiry into the “Misconduct in the Banking, Superannuation and Financial Service Industry”. Throughout this report, various recommendations were made to improve the transparency and conduct of this industry. The two recommendations most relevant to you include the implementation of a dedicated supervisory body that is separate from the government and for “Stale” superannuation accounts to stop being charged insurance premiums.
Superannuation changes – What you need to know
The government has recently introduced changes to address the second recommendation. After the passing of the bill, superannuation now 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 the age of 25 or have a balance below $6000. This change was designed to help you if you are a young, casual or part-time worker. If your insurance doesn’t work on an ‘opt-in’ basis, then your super may be at risk of erosion.
Is your super eroding right now?!
Despite the changes in superannuation, if you have more than one super account, chances are you will be paying for more than one insurance premium. These premiums will then erode your “Stale” accounts until you have less than $6000. Yet, paying multiple insurance premiums provides little benefit to you over a singular insurance policy even when making a claim.
Throughout the process of tidying up these accounts, however, you will be met with repeated barriers even after the inquiry in superannuation misconduct.
In one particular case, a career-ending injury stopped an individual from working who possessed seven different superannuation accounts. He started by 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 contact. Only through lodging a complaint with the Australian Financial Complaints Authority (AFCA) did the superannuation companies assist the claim process.
At Splatt Lawyers, we truly care for you and are committed to providing you with the best service that meets your needs. For this reason, we provide a no-win, no-fee service to ensure you are treated properly. We have been operating for 28 years and have successfully resolved over 99% of our client’s disputes without a need to go to court. Give us a call today on 1800 954 153
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