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You can find the current article at its original source at https://www.theguardian.com/australia-news/2018/may/08/superannuation-funds-banned-from-charging-exit-fees
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| Version 1 | Version 2 |
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| Superannuation funds banned from charging exit fees in budget announcement | Superannuation funds banned from charging exit fees in budget announcement |
| (7 months later) | |
| Australia’s multibillion-dollar superannuation funds will be banned from charging exit fees to all customers in a move that will save the average person $68 when they next change funds. | Australia’s multibillion-dollar superannuation funds will be banned from charging exit fees to all customers in a move that will save the average person $68 when they next change funds. |
| The treasurer, Scott Morrison, says super funds will also face a 3% annual cap on the fees they can charge passive accounts with balances below $6,000, to prevent low super balances from being eroded by ever-rising fees. | The treasurer, Scott Morrison, says super funds will also face a 3% annual cap on the fees they can charge passive accounts with balances below $6,000, to prevent low super balances from being eroded by ever-rising fees. |
| The complete 2018 Australian budget: choose what matters to you | |
| In addition, insurance arrangements within superannuation accounts will move from a default framework to be offered on an opt-in basis for members with balances below $6,000, members under the age of 25, and members whose accounts have not received a contribution in 13 months and are considered “inactive”. | In addition, insurance arrangements within superannuation accounts will move from a default framework to be offered on an opt-in basis for members with balances below $6,000, members under the age of 25, and members whose accounts have not received a contribution in 13 months and are considered “inactive”. |
| The changes are designed to protect the retirement savings of young people and those with low balances by ensuring their super is not unnecessarily eroded by premiums on insurance policies they do not need or are not aware of. The changes will also reduce the incidence of duplicated cover so individuals are not paying for multiple insurance policies. | The changes are designed to protect the retirement savings of young people and those with low balances by ensuring their super is not unnecessarily eroded by premiums on insurance policies they do not need or are not aware of. The changes will also reduce the incidence of duplicated cover so individuals are not paying for multiple insurance policies. |
| • Tax cuts for middle low and middle income earners with most saving between $200 and $530 a year on their tax bill through a tax offset | • Tax cuts for middle low and middle income earners with most saving between $200 and $530 a year on their tax bill through a tax offset |
| • Ambition for a flat tax rate by 2024 of 32.5% for everyone earning between $41,000 and $200,000 | • Ambition for a flat tax rate by 2024 of 32.5% for everyone earning between $41,000 and $200,000 |
| • $4.5bn earmarked for roads, but major public transport projects will have to wait years for the lion's share of funding announced in the budget. $24.5 billion has been directed to new commitments, but only $4bn of that is being spent in the next four years | • $4.5bn earmarked for roads, but major public transport projects will have to wait years for the lion's share of funding announced in the budget. $24.5 billion has been directed to new commitments, but only $4bn of that is being spent in the next four years |
| • The controversial robodebt electronic debt recovery is to continue | • The controversial robodebt electronic debt recovery is to continue |
| • Newly arrived migrants will have to wait another year to receive welfare assistance, while refugees will see their wait for Newstart doubled to 26 weeks | • Newly arrived migrants will have to wait another year to receive welfare assistance, while refugees will see their wait for Newstart doubled to 26 weeks |
| • Superannuation funds to be banned from charging exit fees and fees for accounts under $3,000 will be limited to 3% | • Superannuation funds to be banned from charging exit fees and fees for accounts under $3,000 will be limited to 3% |
| • ABC to have its funding cut by $83.7 million over three years. Meanwhile a Captain Cook statue in Scott Morrison’s electorate is to be built at a cost of $25m | • ABC to have its funding cut by $83.7 million over three years. Meanwhile a Captain Cook statue in Scott Morrison’s electorate is to be built at a cost of $25m |
| • ‘Black’ economy is under the spotlight with government planning to claw back revenue it is losing to illegal tobacco. Home Affairs estimates it can earn $3.6 billion from a crackdown | • ‘Black’ economy is under the spotlight with government planning to claw back revenue it is losing to illegal tobacco. Home Affairs estimates it can earn $3.6 billion from a crackdown |
| • Pensioners will be able to earn an additional $25 a week without reducing their pension. The pension loan scheme is also being expanded, which allows pensioners to use their homes as equity to boost their retirement incomes | • Pensioners will be able to earn an additional $25 a week without reducing their pension. The pension loan scheme is also being expanded, which allows pensioners to use their homes as equity to boost their retirement incomes |
| • $1.6bn is being spent to support an additional 14,000 additional high-level home care packages. A further $82.5m is being spent on mental health services for older Australians, including a $20m “loneliness” package, to help people “remain connected to their communities”. | • $1.6bn is being spent to support an additional 14,000 additional high-level home care packages. A further $82.5m is being spent on mental health services for older Australians, including a $20m “loneliness” package, to help people “remain connected to their communities”. |
| • New measures to help crack down on multinationals avoiding tax commitments. The government is also moving to add to previously announced measures to make sure income earned in Australia, can be taxed by Australia. | • New measures to help crack down on multinationals avoiding tax commitments. The government is also moving to add to previously announced measures to make sure income earned in Australia, can be taxed by Australia. |
| The raft of measures is part of a package announced in the budget on Tuesday to protect the super balances of young Australians and low-income earners from being whittled away by fees and insurance premiums. The changes will take effect from 1 July 2019. | The raft of measures is part of a package announced in the budget on Tuesday to protect the super balances of young Australians and low-income earners from being whittled away by fees and insurance premiums. The changes will take effect from 1 July 2019. |
| According to the Australian Prudential Regulation Authority, superannuation members lost $52m in exit fees in 2016-17 alone. | According to the Australian Prudential Regulation Authority, superannuation members lost $52m in exit fees in 2016-17 alone. |
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| The government will expand the powers of the Australian Taxation Office to allow it to consolidate inactive super accounts of individuals – where balances are below $6,000 – and to proactively reunite those accounts with a member’s active account. | The government will expand the powers of the Australian Taxation Office to allow it to consolidate inactive super accounts of individuals – where balances are below $6,000 – and to proactively reunite those accounts with a member’s active account. |
| The government expects the measure will save the budget $1.1bn over four years. | The government expects the measure will save the budget $1.1bn over four years. |
| Treasury officials say there are roughly 6 million inactive super accounts in Australia, belonging to 4 million members. | Treasury officials say there are roughly 6 million inactive super accounts in Australia, belonging to 4 million members. |
| The government says insurance changes will not prevent anyone who wants insurance within their super from being able to obtain it. Low-balance, young and inactive members will still be able to opt in to obtain it. | The government says insurance changes will not prevent anyone who wants insurance within their super from being able to obtain it. Low-balance, young and inactive members will still be able to opt in to obtain it. |
| The measure is expected to save the budget $697m over four years. | The measure is expected to save the budget $697m over four years. |
| Australian budget 2018 | Australian budget 2018 |
| Scott Morrison | Scott Morrison |
| Australian politics | Australian politics |
| Coalition | Coalition |
| Superannuation | Superannuation |
| news | news |
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