The Protecting Your Super (PYS) legislation was introduced by the Federal Government in response to the Royal Commission into Banking and Financial Services and came into effect on 1 July 2019.

The PYS legislation is intended to protect the super balances of all Australians and has altered the fees funds can charge, implemented the transfer of inactive low-balance accounts to the Australian Tax Office (ATO) and introduced cancellation of insurance for inactive members.

It’s important for you to be aware of these ongoing changes, as they may have a significant impact on your financial future.

What do these changes mean for you?

Reduction in fees

• Super funds will no longer charge exit fees
• There is now a 3% cap on both administration and investment fees for accounts with balances of less than $6,000.

Changes to insurance
If your Statewide Super account is;

• inactive for a continuous period of 16 months, and
• you do not elect in writing to hold insurance in your account;

then the insurance provided through your superannuation account must be cancelled. Your account will be considered ‘inactive’ if it has not received a contribution or rollover for a continuous 16 month period.

Inactive, low-balance accounts transferred to the Australian Tax Office
Statewide Super may be required to transfer the balance of your account to the Australian Tax Office (ATO) if it is classified as an ‘inactive low-balance account’, as your account:

• has not received any contribution or rollover for a continuous period of 16 months; and
• has a balance of less than $6,000.

If the ATO identifies that you have an active account with another fund and by transferring your Statewide Super balance to that active account, such that your account will have a total balance of $6,000 or more, the ATO will reunite your superannuation into the active account within 28 days of receiving the transfer.

If the ATO is unable to identify that you have an active account, your money will be retained by the ATO. You will not be charged any fees during this time.

When you claim your super being held by the ATO you will be paid interest based on the Consumer Price Index (CPI) at that time.

The ATO identifies an account as not being an inactive low-balance account if in the last 16 months you have:

• changed your investment options
• made changes to your insurance coverage
• made or amended a binding beneficiary nomination
• made a written declaration that you are not a member of an inactive low-balance account
• an amount owed to the super provider.

For more information on inactive, low-balance accounts visit the ATO website.

Frequently Asked Questions

• How can I check if I have insurance?

  It’s important to be informed about your superannuation, including any insurance you currently hold through your Statewide Super account. You can enquire as to what insurance you currently have through your Statewide Super account by:

  • logging into your secure Statewide Super Online account and going to the ‘Insurance’ tab; or
  • calling our Member Services team on 1300 65 18 65.
• How can I check my account balance?

  You can check your Statewide Super account balance by:

  • logging into your secure Statewide Super Online account; or
  • calling our Member Services team on 1300 65 18 65
• How can I keep my insurance with Statewide Super?

  If you are currently a member of Statewide Super and receive a notice from us that your account is ‘inactive’, your insurance may be cancelled. If you would like to keep your insurance you can provide Statewide Super with a PYS election. This can be done by:

  • calling our Member Services team on 1300 65 18 65 who will talk you through providing your election in writing; or
  • logging into your secure Statewide Super Online account, going to the ‘Insurance’ tab and ticking the ‘elect’ box.
• When will my super money be sent to the ATO?

  Statewide Super is required to identify inactive low-balance accounts on 30 June and 31 December each year and then report and pay them to the ATO by the statement date.

  For accounts identified on:

  • 30 June, the statement date is 31 October of the same year
  • 31 December, the statement date is 30 April of the following year.
• Why do you have to send my super money to the ATO?

  If your account is an inactive low-balance account, Statewide Super is required to transfer your super money to the ATO under the Protecting Your Super legislation.

   

• How can I keep my Statewide Super account?

  You can do this by:

  • Logging into your Statewide Super online account, going to the 'Account' tab and then 'Retain Accounts' to nominate to stay with Statewide Super, or
  • Authorising Statewide Super to provide a written declaration to the ATO by completing this form and emailing it to info@statewide.com.au.
• What happens to my super money if it gets sent to the ATO?

  Within 28 days of receiving your money, the ATO will try to transfer it to your active super fund account (if you have one). This will only happen if it will take your total balance to $6,000 or more. If you do not have any other active super account, the ATO will hold your superannuation money for you. You will not accumulate an investment return or be charged any fees during this time. Refer to the ATO website for further information.

• What happens if the ATO can’t find any other super money that belongs to me?

  If the ATO can’t find an active superannuation account the ATO will hold your superannuation money for you. Refer to the ATO website for further information.