Will it still be active from 1st July 2019?

Parliament has recently passed a bill that is known as "Protecting Your Superannuation Package"

The purpose of this new legislation is to protect those individuals that are holding multiple low balance Superannuation Accounts.

From the 1st July 2019 the ATO will be able to consolidate member accounts that have:

  • a balance of under $6,000, &
  • not received a contribution for a period of 16 months or more

Although on the surface this does appear to be in the members best interest a potential implication of this is the members may lose the default insurance cover contained in their superannuation accounts if it remains inactive post the 1st July 2019.

In the case where a member has multiple superannuation accounts & due to changes in employers, the consolidation of accounts and cancellation of duplicate insurances may, in fact, be in the members however interest. 

However, it is possible that a member may not have been contributing to a fund with good reason. It could be due to things like extended maternity leave, an overseas posting, a period of unemployment or many other possible reasons loss of insurance cover post the 1st July 2019 may not be the desired outcome.

Superannuation Funds have been contacting their members in writing and requesting the completion of an election form in order to continue insurance cover held within an inactive fund.

As such I encourage all individuals with multiple superannuation accounts or inactive superannuation accounts to contact their respective superfunds to determine if they hold insurance cover in the fund and if the cover & level of cover are still appropriate.

Should you decide to keep your insurance policy please ensure that you advise your Superfund prior to the 1st July 2019.

Should you wish to get in contact with our Financial Planner, Andrew Bowing please feel free to contact the office either via phone (03) 9974 8333 or email This email address is being protected from spambots. You need JavaScript enabled to view it.