Changes to superannuation – what does it mean for you?

Changes to superannuation – what does it mean for you?

Super. It’s really everywhere at the moment. Not a day goes by when there isn’t a piece of news about superannuation – changes to your super, the Banking Royal Commission and government recommendations. We realise it’s confusing.

Earlier this month, the Sydney Morning Herald reported that Australian workers will be better off under Commissioner Kenneth Hayne’s recommendations designed to overhaul the $2.6 million superannuation sector.

What will the recommendations mean for you?

In short:

  • Employees will have only one default superannuation account – this is designed to stop the unnecessary draining of fees due to having multiple accounts.
  • The unsolicited selling of superannuation products will be banned – this is to address the fact that over time, consumers may have been sold superannuation products that were not in their best interest.
  • The deduction of advice fees for MySuper accounts (a low-cost, simple superannuation product) will be prohibited, and fees on other ‘choice’ accounts will be limited.

At Nexis we will keep you up to date on the latest superannuation news as it comes to hand. Need advice on super? Chat with us today.

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