POWERED BY MOMENTUM MEDIA
Industry fund concern at insurance changes
The Federal Government’s reintroduced legislation aimed at changing the rules around insurance inside superannuation is too blunt with time-frames that are too short, according to industry superannuation funds representative body, the Australian Institute of Superannuation Trustees (AIST).
The Government late last week reintroduced the Treasury Laws Amendment (Putting Members’ Interest First) Bill to the Parliament – something which would see insurance inside superannuation made opt-in for those with super balances below $6,000 or aged under 25.
The legislation represented a reintroduction of legislation which was subject to amendment in the Senate before the 18 May Federal Election.
AIST head of advocacy, Ailsa Goodwin, said the organisation was ramping up its advocacy because of its concerns about the implications of the legislation.
“We support the intent of this legislation to protect some members – such as young people – from paying for insurance they may not need. But the legislation is too blunt and the timeframe is too short,” she said.
“Unfortunately, younger people in risky occupations do get injured and do make claims. The legislation needs to contain exemptions for super funds with members in this category,” Goodwin said.
Backing the AIST’s concerns around the Government’s unrealistic time line, Goodwin said that if the industry did not have adequate time to deal with the changes then members would suffer.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
