From 1 July 2019, Super Package Act will come into effect.
The inactive low-balance accounts may be transferred to the Australian Tax Office (ATO), and insurance cover in the super fund may also be stopped.
Your account is considered inactive if it hasn’t received a super contribution for over 16 months, has a balance of less than $6,000.
However, your super account is deemed to be active if any of the following occur,
- made an investment switch;
- changed your insurance cover;
- made or amended a binding beneficiary nomination,
If you are unsure if your super fund is active or you wish to keep your insurance cover, you should talk to your super fund provider and find out the alternatives.
For more information, please contact Beyond Taxation for further clarification.