The Protecting Your Super package, which was introduced by the Federal Government has been designed to protect you from paying unnecessary fees and insurance costs. Under this new legislation, all super funds are required to transfer inactive low balance accounts to the Australian Tax Office (ATO).
Once transferred, the ATO will attempt to consolidate your account (within 28 days of matching) into an active account if the combined balance will be $6,000 or more.
What classifies as an inactive low balance account?
- Account balance is under $6,000
- Account has no insurance cover
- An amount is not owed in respect of that account
- No amounts have been received into the account over the last 16-months; and
- No other active changes to the account have been made including changing investment options, or making a binding beneficiary nomination in the last 16 months.
The ATO will keep your money safe and you’ll pay $0 in fees while your money is with them, however, you will not benefit from receiving any investment returns from your super fund. When you claim your super or it is matched with another account, any interest due will be paid to you, which is based on the consumer price index (CPI).
DON'T WISH TO BE TRANSFERRED TO THE ATO?
Re-activate your account and stay with Vision Super by actioning any of the below options before 16 September
|CONSOLIDATE||CONTRIBUTE||BINDING BENEFICIARY NOMINATION|
|Combine your accounts to avoid costly duplication||To your super account||Nominate who gets your super|