From 1 July 2019, there will be six changes to Superannuation and/or pensions that will impact millions of Australians. The first four are positive and should help people minimise fees and/or increase the amount of super they have. The last two are more contentious. They apply to general accumulation funds and don’t apply to defined benefit schemes, Australian Defence Force Super or self-managed super funds.

  1. Exit fees will be removed for people changing super funds. If you are looking to move funds, it may pay you to wait until after 1 July, although most exit fees are generally pretty low anyway.
  2. Super funds won’t be able to charge more than 3% administration and investment fees for accounts with less than $6,000. This should be a positive for those starting work or those with small account balances. You won’t notice the benefit of this for another 12 months.
  3. The pension work bonus will increase from $250 to $300 per fortnight. This will allow pensioners to earn up to $300 each fortnight without reducing their age pension entitlements.
  4. Retirees aged between 65 and 74 with a super balance below $300,000 will be allowed to make voluntary super contributions for the first year that they no longer work. This will allow pensioners to take advantage of the generous tax treatment of income earnt in their super.
  5. Inactive accounts with less than $6,000 will be transferred to the Australian Tax Office. An inactive account is one that has not had any contributions for the past 16 months. The ATO will attempt to consolidate this with an active fund. However, if they can’t find one, they will hold the funds until you claim them.
  6. Super funds must cancel personal insurance on all inactive super accounts unless instructed otherwise. Personal insurance includes life, total and permanent disability, and income protection and losing this could be devastating. If this insurance is cancelled, depending on your current health or work, you may not be able to get it back again. Your super fund should have contacted you about this, however, this only works if they have your current contact details.

Before the end of June, log onto your MyGov account and check if you have any inactive super accounts that you don’t know about.

If you have an inactive account, firstly confirm if there is any personal insurance associated with it. If you want to keep the insurance, make sure you advise the super fund as soon as possible before the end of June. Where there is no insurance, consider consolidating it with your active super account to save on any administration fees.

Where you have an inactive account that you want to keep you can make a contribution to it; change your investment options; make changes to your personal insurance; or make or amend a binding beneficiary nomination. In all circumstances, you should contact the fund to tell them what you are intending.

Whatever you do, don’t leave it until the last day of the month.

If you want some help with super or independent financial advice, book a chat via the button below. Alternatively contact us on 0417 034 252 or at

About the Author
Phil Harvey is an independent financial adviser. In 2017 Phil set up his company Construct Wealth to help clients best manage their finances so they focus on what is important to them. He is a founding member of the Profession of Independent Financial Advisers and a tax financial adviser, registered with the Tax Practitioners Board.

General Advice Warning
This advice contains general information. It may not be suitable to you because it does not consider your personal circumstances. Phil Harvey and Construct Wealth are authorised representatives of Independent Financial Advisers Australia (AFSL 464629)