Protecting Your Super: What You Need to Know

Under the current superannuation legislation, your Superhero Super account may be classified as an inactive low-balance account if your account has no ‘Activity’ in the last sixteen months and a balance below $6,000. Here are the essential points:

Criteria for Inactive Low-Balance Accounts:

• No contributions credited for 16 months.
• Balance under $6,000.
• No conditions of release met.
• Not a defined benefit account.
• No insurance linked to the account.
• Not in a self-managed super fund (SMSF) or a small APRA fund.

Activities That Maintain Active Status:

Your account will remain active if you’ve engaged in any of the following in the past 16 months:

• Changed investment options.
• Elected to keep insurance on the account.
• Updated insurance coverage.
• Made or amended a binding beneficiary nomination.
• Submitted a written notice opting out of being classified as inactive.

Important Notice:

If you’ve previously declared your intention to keep your account active more than 16 months ago, you must resubmit your declaration to maintain this status.

Protecting Your Superannuation:

The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 requires inactive low-balance accounts to be transferred to the ATO. This protects your funds from fee erosion. The ATO may also help consolidate your super funds.

Keeping Your Superhero Super Account Active:

To avoid the transfer and keep your account active, take any of the following actions before the given deadline:

• Confirm your active status by indicating you are not an inactive low-balance account holder.
• Contribute to your account, either personally or through your employer. If you’ve changed jobs, a Choice of Fund form is required.
• Update your account by changing your investment strategy, nominating a beneficiary, or modifying your insurance coverage.
• Consolidate your super by rolling other superannuation balances into your Superhero Super account through MyGov.