Superannuation

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Consumer advocacy group Super Consumers Australia welcomes the ‘Your Future, Your Super’ reforms announced in the Federal Budget tonight. “Overall, the government’s ‘Your Future, Your Super’ reforms create a better superannuation system for consumers and lift standards across the sector. These reforms will leave more people with more money in retirement,” says Xavier O’Halloran, Director…

Read More Reforms will leave Australians with more in retirement: Super Consumers Australia

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Superannuation trustees that were classifying new members as ‘smokers’ by default and charging them higher life insurance premiums have ceased this practice, and some trustees have remediated members for the extra premiums paid. Between 2017 to 2020, ASIC engaged with seven superannuation businesses, (comprising nine superannuation trustees) that had been, either at the time or…

Read More Superannuation trustees compensate members wrongly classified as ‘smokers’

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The Conexus Institute, Actuaries Institute and Super Consumers Australia have collaborated to produce an Information Sheet addressing early access to super. As you are aware the Government is allowing eligible individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. A challenge for super funds…

Read More An Information Sheet relating to early access to super

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Scammers are now trying to exploit Australians financially impacted by the COVID-19 crisis with new superannuation scams being reported to Scamwatch in recent weeks. Scammers are already trying to take advantage of the Government’s recent announcement that people suffering financial hardship can have partial access to their superannuation from mid-April. “Scammers are cold-calling people claiming…

Read More Scammers targeting superannuation in COVID-19 crisis

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ASIC has written a letter to the real estate institutes in each state outlining concerns about some real estate agents who are advising tenants to apply for early release of their superannuation. AISC warns that such conduct by real estate agents may be in contravention of the Corporations Act as it may may constitute unlicensed…

Read More ASIC warns of unlicensed financial advice by real estate agents to tenants

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ASIC has released the findings from its recent review of superannuation trustees’ communications with their members about changes introduced through the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (PYSP). The PYSP reforms were introduced to protect the superannuation savings of Australians from erosion due to inappropriate fees and insurance premiums as well as to reduce unintended…

Read More ASIC releases report reviewing trustees’ PYSP communications

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Previous Executive Director of Consumers’ Federation Australia Jenni Mack was awarded a Member of the Order of Australia (AM) in the Australia Day Honours for her service to consumer advocacy. CFA is thrilled by the fantastic recognition of Jenni’s long-running contribution to consumer advocacy and the welfare of Australians. Jenni was Executive Director of the…

Read More Previous CFA Executive Director Jenni Mack awarded a Member of the Order of Australia

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ASIC has warned Australian investors considering establishing their own self-managed superannuation fund (SMSF) to be particularly aware of the potential downside to such a strategy, and that many Australians set up SMSFs that are inappropriate for their circumstances. ASIC has identified eight ‘red flag’ situations which, together or in part, would make it extremely unlikely…

Read More ASIC urges consumers to question whether SMSFs are right for them

The Federal Government has committed to a process to fund a superannuation consumer advocate in Tuesday night’s budget. Independent consumer groups CHOICE and the Superannuation Consumers Centre (SCC) have welcomed the Federal Government’s announcement to scope the permanent funding of a Superannuation Consumer Advocate but say this needs to be backed by a substantial long-term…

Read More Budget backing for superannuation consumer advocate

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People will be hundreds of thousands of dollars worse off in retirement if the Federal Government doesn’t act now to stop the superannuation sector eroding savings. Today the Productivity Commission has released its plan to reverse the outdated structure that has led to poor performing funds, multiple accounts and zombie insurance policies. Fixing these problems…

Read More Advocates call for changes to superannuation sector