A new Australian bill — the Treasury Laws Amendment (Putting Members' Interests First) Bill 2019 — would require insurance coverage for members with low-balance superannuation accounts (under AUD $6,000) and insurance on opt-in basis starting 1 Oct 2019 for new members younger than 25 years old. Published on 20 Feb 2019, the bill aims to reintroduce the default insurance cover bans that were removed from the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018.
Near-term enactment unlikely. The bill reached the second reading before the parliament adjourned. Although the parliament will reconvene for the budget sitting scheduled for 2-4 Apr 2019, the bill is unlikely to pass before the anticipated general election in mid-May 2019. Despite the bill’s dim prospects for enactment, the government may have introduced the legislation in order to include revenue savings from the reduced insurance premium tax deduction in the 2019–20 budget.
Future changes likely. Whichever party is in power, changes like the ones in this bill are apt to reappear in future legislation. However, the industry — which must implement the Protecting Your Superannuation Package Bill by 1 Jul 2019 — is likely to push for an implementation date much later than 1 Oct 2019.
- Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019 (Australian Parliament, 20 Feb 2019)
- Press Release (Australian Treasury, 20 Feb 2019)
- Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 (Australian Parliament, 18 Feb 2019)