New laws to protect employees’ super

On 1 July 2019, the Protecting Your Superannuation legislation came into effect. It’s designed to protect super savings, particularly for any employees who have low balances or have insurance attached to their super.

What are the changes?

The legislation has set a cap on the fees charged on accounts with low balances. If an employee’s account balance is below $6,000, the total fees we charge cannot exceed 3% pa. Exit fees (including contribution split fee) have also been removed.

If there are no contributions or rollovers made to an employee’s super account for 16 months, we’re required to cancel any insurance cover attached to their account, unless you are paying their insurance premiums separately.

If an employee’s super balance is less than $6,000 and is inactive for 16 months or more, we‘re  required to transfer it to the ATO. If any of your employees’ accounts are impacted by this change, we’ll contact them with more information. They can ensure their account remains active and avoid the automatic transfer to the ATO by taking certain steps.

How are we telling your employees about these changes?

We’re providing your employees with information about these changes through the brochure attached to Annual Statement. Members can also find out more at your super. We’re also providing advisers with information updates to help any of your employees who may be their clients.

Important information  

This is intended to provide general information only and has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 (AFSL 236465) without taking into account your objectives, financial situation or needs. You should, before acting on this information, consider the appropriateness of this information having regard to your personal objectives, financial situation or needs. We recommend you obtain financial advice specific to your situation before making any financial investment or insurance decision.

Part of the National Australia Bank Group of Companies. An investment with NULIS Nominees (Australia) Limited is not a deposit or liability of, and is not guaranteed by, National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB). NAB does not guarantee or otherwise accept any liability in respect of this product.