Commonwealth Reforms - Protecting Your Super Package

  • ​​​On Monday 18 February, the 'Protecting Your Super Package' was passed by the Australian Parliament, and will become law from 1 July 2019.
  • The key points from the 'Protecting Your Super Package' relate to fees, the handling of low balance accounts and arrangements for insurance on inactive accounts.
  • The reforms do not impact any of the RBF Defined Benefit schemes.  However, if you have superannuation with other funds the reforms might be of relevance to you.
  • Below is a brief summary of changes for information purposes​ and if you have any queries please direct them to your other superannuation fund.


The new laws apply a cap on administration fees for accounts with balances below $6,000, and exit fees have also been banned.

Not applicable to RBF accounts - RBF does not charge members administration fees or exit fees.

Inactive low-balance accounts

Under the rules, members accounts with an 'inactive low balance account' will be transferred to the ATO as 'unclaimed super'. Under these reforms, the test for an inactive low balance account is:

  • the account has a balance under $6,000; 

  • the fund hasn't received any contributions into the account over a continuous 16 month period; and

  • the member hasn't made any active changes to the account such as changing the investment option, insurance coverage or binding beneficiary nomination. 

Not applicable to RBF accounts - unclaimed RBF monies are payable to Treasury as part of the Tasmanian Unclaimed Monies Act 2015.


The n​​ew rules change the way in which super funds provide 'default insurance'; and take steps to avoid low balance accounts being eroded by insurance fees.

The original package of measures was intended to remove the ability of super funds to provide and charge for 'default insurance' for new members under 25 years old; accounts with balances under $6,000; or inactive accounts. 

Parliament only approved the limitation being applied to inactive accounts.

Not applicable to RBF accounts - Contributing RBF members are entitled to a range of defined benefits, including interim invalidity benefits, total and permanent incapacity benefits and death benefits, in addition to retirement benefits - these reforms do not apply.

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