Today the Labor Party refused to commit to protect the hard-earned retirement savings of millions of Australians against excessive fees and inappropriate insurance charges, and refused to agree to billions of dollars of lost and inactive superannuation being returned to Australians.
It comes as just last week the Labor Party voted against tens of thousands of Australian workers receiving unpaid superannuation entitlements that they are owed.
The Government’s Protecting Your Superannuation Package announced in the Federal Budget and passed by the House of Representatives today protects the superannuation savings of Australians from erosion by capping certain fees on low balance accounts and banning exit fees on all accounts.
The Package also improves insurance arrangements by ensuring that young income earners, inactive accounts and low balance accounts are not automatically charged insurance premiums for cover they do not know they have, that goes beyond what they need, or which they cannot even claim on.
As a result of the Government’s changes around 5 million individuals will have the opportunity to save an estimated $3 billion in insurance premiums by choosing to opt-in to this cover, rather than paying for it by default.
It will also see the Australian Taxation Office for the first time proactively reunite lost and inactive super accounts with their rightful owners. This new system is expected to deliver $6 billion of superannuation to 3 million members’ active superannuation accounts in the first twelve months after it comes into force.
Last Wednesday Labor attempted to prevent Australians receiving superannuation payments they are owed through the one-off, twelve month amnesty. Under that legislation it is estimated that $230 million of superannuation and interest will be returned to 50,000 employees, who would otherwise miss out.
Labor should today commit to supporting all of the Government’s superannuation reforms which will benefit millions of Australians.
If they don’t, Labor are standing between you and your money. After all, superannuation is your money.