SMSF trustees and non-residents may need to act now to retain insurance in Superannuation
The Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2019 received Royal Assent on 12 March 2019. It’s purpose is to safeguard individuals superannuation by reducing fees and removing insurance on low balance funds and transferring low balance inactive funds to the ATO for administration.
However, many SMSF members maintain a small retail or industry superannuation fund to maintain access to group insurance policies within these funds, as they may be cheaper or provide better protection than can be sourced within their SMSF. This legislation may inadvertently place these insurance policies at risk unless members act.
Legislated super changes to take effect from 1 July 2019, read more about the changes here and what you should do if you think they may affect you.