What is the legislation and why was it introduced?
In 2019, the government introduced new legislation to reduce multiple superannuation accounts many Australians have. Having multiple accounts means paying multiple fees and charges which can erode retirement savings especially with low balance accounts. The new legislation proactively brings together old low balance superannuation accounts with the current one.
If you haven’t added money to your First Super account for 16 months and it has less than $6,000 in it, by law, First Super must send your superannuation account to the Australian Taxation Office (ATO).
However, you won’t be affected if any of the following actions have been taken within the 16-month period:
• made a contribution
• changed your investment option
• updated your insurance cover (e.g. increased cover amount)
• completed and submitted a binding Nomination of Beneficiary Form and/or
• completed and submitted an ATO Declaration Form.