New laws are putting pressure on super funds

Alex Burke,  Senior Writer,  No More Practice Education

With the Government passing the Protecting Your Super package, super funds will now have to comply with additional requirements - some of which, depending on the structure of the fund, may have a tangible impact on both members and trustees.

We previously discussed this package in November, when Assistant Treasurer Stuart Robert said it would protect against “inefficiencies that result from Australians inadvertently holding multiple superannuation accounts.”

He added that it would empower the ATO to reunite Australians with lost super and puts a cap on “certain fees that can be charged on small superannuation balances, and bans exit fees on all accounts.”

With the package now passing into law, let's consider some key ramifications:

Administration and investment fee cap

From now on, funds must cap fees at 3% for superannuation accounts with balances of $6000 or less. This may pose an issue for super funds, especially newer ones explicitly aimed at meeting the

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