The Australian Government has asked the Productivity Commission to undertake a review of the competitiveness and efficiency of the Australian superannuation system.
One of the proposed measures is the *auto-consolidation or auto-cessation of multiple superannuation accounts. *
We are concerned that this type of measure could prejudice, or harm, many people who hold multiple superannuation accounts. An unforseen consquences of automatically consolidating multiple funds could be the affect on, or at worst the removal of, total and permanent disability insurance.
In submissions to the Productivity Commission the Australian Lawyers Alliance have recommended that auto-consolidation and auto-cessation should be subject to a no-disadvantage test, and should never occur without ensuring that the policy holder is aware that automatic consolidation or cessation is about to occur, what the implications of such an automated event might be, and how they can avoid the automated event from occurring.
At McNamara and Associates, we have assisted injured persons claim on as many as four superannuation accounts. It would be concerning to many people if the proposed measure of auto-consolidation were introduced without something like the no-disadvantage test being applied.
If you require any assistance with any other superannuation insurance matter do not hesitate to contact one of our superannuation lawyers on 13 58 28.