WHAT IS THE PROTECTING YOUR SUPER LEGISLATION?
The new ‘Protecting your Super’ law introduces a collection of super reforms aimed to protect Australian’s retirement savings being eroded by fees and insurance premiums. As a result of this legislation we will be introducing several updates to our products detailed below:
Fee Capping on accounts below $6000
From 1 July 2019, if an account balance is below $6,000, members will not pay more than 3% of their account balance in administration fees, investment fees and indirect costs per financial year.
We will assess whether members have paid more than 3% in fees at 30 June each year, or when they cease to hold a product, and any excess fees will be refunded to them.
Insurance cancellation on inactive accounts
If we don’t receive a contribution or rollover to a member’s super account for a continuous period of 16 months the account will be deemed 'inactive'.
If this occurs we are required by law to cancel their insurance cover before their next premium is due, unless the member elects in writing to keep their cover. Members can contact us for election forms.
We will cancel insurance cover for 'inactive' accounts from 1 July 2019.
Australian Tax Office consolidation on low balance inactive accounts
From 1 July 2019, if a member has no insurance cover, has an account balance below $6,000 and we have not received a contribution or rollover to their account for a continuous period of 16 months (inactive low balance account), we are required by law to report and transfer their account to the Australian Taxation Office (ATO). For the initial ATO transfer taking place in October 2019, we will identify inactive low-balance accounts as at 30 June 2019.
An account will no longer be considered inactive and will not be transferred to the ATO, if for example, the member makes a contribution or rollover; changes their investment options or makes or alters a binding beneficiary nomination before the ATO transfer date.
We will report on and transfer inactive low balance accounts to the ATO twice a year, in accordance with legislated timeframes. The ATO will transfer balances to a member’s active super account, where possible.
Adviser Use Only
Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (Colonial First State) is the issuer of FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension, FirstChoice Employer Super offered from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. It also issues interests in the Rollover & Superannuation Fund (ROSCO) and Personal Pension Plan (PPP) offered from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments. This is based on the understanding of current regulatory requirements and laws as at 14 March 2019. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any loss suffered by any person arising from reliance on this information. This document provides information for the adviser only and is not to be handed on to any investor. It does not take into account any person’s individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before making any recommendations to a client. Clients should read the PDS and FSG before making an investment decision and consider talking to a financial adviser. The PDS and FSG can be obtained from or by calling us on 13 18 36.