Putting Members’ Interests First

The Federal Government recently introduced the ‘Putting Members’ Interests First’ legislation to help reduce the chance of members’ super being eroded by insurance costs while they’re building up their balance.

Lauren and Peter from our Membership Team chat about the legislation change and what it means for members.

person being interviewed

The legislation change means that from 1 April 2020 we can no longer provide basic insurance cover for members whose super balance hasn’t reached $6,000 at any time from 1 November 2019.

Basic insurance cover is the cover provided automatically to members when they join AustralianSuper.

Does this legislation affect me?

It might – if your AustralianSuper balance hasn’t reached $6,000 before 1 April 2020. The new legislation means that if you don’t have $6,000 in your super account on 1 April 2020, we’re required to cancel your basic insurance cover.

The legislation doesn’t affect you if:

  • you have fixed your cover amount
  • you have basic + extra (fixed) cover
  • you’re an AustralianSuper Select member and your employer pays for all of your cover

What are my options?

You’re not required to do anything you don’t want to, but you may want to consider the following:
There are two actions you can take if you choose to keep your cover (you need to have enough money in your account to pay for it):
  1. complete the Keep your cover form by 31 March 2020,
  2. OR

  3. increase your super balance to $6,000 or more by 31 March 2020 – visit australiansuper.com/increase to learn how.

If you take no action, and your account balance hasn’t reached $6,000 at any time from 1 November 2019 to 31 March 2020, any basic cover you hold will be cancelled on 1 April 2020.
  • Your basic cover may restart in the future, but it may be limited cover and could be higher or lower than the cover you have now.
  • To be eligible for basic cover to restart automatically, you must be at least 25 years of age, have a minimum super balance of $6,000 and be receiving employer contributions (age limits and other conditions apply).
  • For more information about our insurance, including costs, terms and conditions, when cover starts and stops, and limited cover or exclusions, read the Insurance in your super guide for your division at australiansuper.com/insuranceguide.

Premiums will continue to be deducted from your super account monthly, if you choose to keep your cover.

Your cover could also stop before 1 April 2020 for a number of reasons. Read the When cover stops section of the Insurance in your super guide for your division at australiansuper.com/insuranceguide for more information.

Should I take action to keep my cover?

If you’re not sure, you should consider getting advice to help work out what cover you need (if any) and how much is right for you.

For simple advice you can call 1300 300 273 and speak with an advice team member or you can arrange a face-to-face meeting for more comprehensive advice.

More advice options are available at australiansuper.com/advice

Frequently asked questions

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