(Australian Associated Press)
New super accounts won’t be automatically created for Australian workers when they change jobs under federal government changes.
Treasurer Josh Frydenberg has unveiled the changes as part of Tuesday’s federal budget.
From July 1 next year, superannuation accounts will automatically follow Australian workers instead of a new account being created when a person changes jobs.
Most people already have the option of providing their employer with their chosen fund’s details, but many forget or dismiss it as unimportant. The changes will reduce paperwork & prevent multiple accounts being created.
The plan is aimed at preventing Australians from paying unnecessary fees.
The government says Australians pay $30 billion a year in superannuation fees, more than the total cost of household gas and power bills.
Of that, $450 million is for unnecessary fees due to six million multiple accounts.
Under the plan, super funds will have to meet an annual performance test and those deemed to be underperforming will have to notify members.
An online comparison tool will also be set up to help Australians choose an account.
The government says the package will save workers $17.9 billion over a decade.