When was the last time you checked up on your super? If you were anything like most young people, the answer would be a casual, “Never.”
It’s something that most millennials have learned to take for granted, as it’s what they have grown up with. When you start your first job, you’re often offered a suggested superannuation provider by your employer, without much thought to your individual needs. And as you bounce from one job to another, many change supers along the way.
The Federal Government is trying to limit the amount of money lost by this practice. 6 billion in ‘ghost accounts’ is being dwindled away by fees, long forgotten by the employees that could be benefitting from that money. The new bill will allow the ATO to gather the funds from accounts that have been unused for 13-months and add the money to the account holders preferred superannuation fund.
Another aspect of the bill, which has left some concerned, is the opt-out option of insurance. Many super funds have automatic insurance for their members, which has been proven to be vital in high-risk professions. And there is legitimate fear that many young people won’t see the immediate benefit and be left with few options after injury.
The Government will be trying to pass the bill in November.