
Are you confused by superannuation? I know I am…
Australia’s superannuation system is supposed to provide people with a means to support themselves in retirement. Sound simple enough? Well let’s make it complicated. At least that seems to be the modus operandi of the Australia’s Federal Government. The governments most recent triumph? The Protecting Your Super Package Act (active 1 July 2019). This legislation has successfully created a frenzy of frantic customers ringing the lines superannuation funds to try to retain their accounts. Although you probably heard news that Australian’s were being protected from ‘erosive’ administrative fees with this new legislation and that a number of Australian’s would be receiving the balance of their super accounts into their bank account. Sounds great! My only question is - has any thought been given to the insurance attached to those accounts? Where was the story about Australian’s losing insurance cover en masse. Don’t get me wrong, I’m all for the consolidation of super accounts. I only have one super account. But the moral of this story should be, let’s think very carefully about the changes we make to an already complex and intricate system. While the members of the government may be accustomed to the intricacies of Australia’s superannuation system, Australia’s battlers are going to be worse for wear if they don’t realise the consequences of these legislative changes.
