How does the fee cap on low-balance accounts work?
If the balance of your Cruelty Free Super account is less than $6,000, from 1 July 2019 you won’t pay more than 3% p.a. in administration fees, investment fees and indirect costs.
We’ll assess your balance at the end of each financial year (or if you leave us, when you exit) and if you’ve paid more than 3% p.a. in fees and costs on an account with a balance of less than $6,000, you’ll be refunded the difference.
What does it mean for my insurance cover if my account becomes inactive?
We’re unable to provide insurance through super if your account has not received an eligible contribution for 16 consecutive months, unless you tell us that you wish to keep your cover.
An eligible contribution includes Superannuation Guarantee contributions, additional employer contributions, personal contributions (including voluntary contributions and contributions made by a spouse), rollovers and automatic transfers from other funds. It does not include Government co-contributions or the low income super tax offset.
We’ll let you know that your insurance cover might be cancelled before taking any action. If you want to keep your insurance cover, you can let us know by completing our online insurance declaration.
By electing to keep your insurance cover, you’re choosing to keep all of your current insurance cover. If you only want to keep some of your current insurance cover, please contact us on 1300 096 631 or email us at email@example.com to discuss which parts of your cover you wish to amend or cancel.
Regular contributions or transfers into your account will also keep your account active and your insurance policy in place, provided there are sufficient funds in your super account to pay the insurance premiums.
What will happen if my inactive, low balance super account is transferred to the ATO?
If your Cruelty Free Super account balance is less than $6,000 on 30 June or 31 December each year, and your account is classified as inactive, we’re now required to transfer your account balance to the ATO.
This will occur whether or not your balance has increased above $6,000 between the date of classification and the date of transfer due to investment returns, investment credits and/or refunds.
We’ll regularly check whether your account meets the inactive low balance criteria. We’ll let you know if you are impacted before taking any action.
If you’re impacted and you don’t want your inactive low-balance account sent to the ATO, you must notify us that you want to keep your Cruelty Free Super account open before the advised response date.
If we don’t hear from you by the response date, your Cruelty Free Super account will be closed, any the money in your account will be transferred to the ATO. Closing your account also means that any insurance cover held through the account will cease.
The ATO has 28 days after receiving your account balance to reunite you with your money via an active superannuation account in your name, so long as the active account will hold a balance of greater than $6,000. If the ATO can’t locate an active super account for you, it will continue to hold on to your account balance on your behalf.
If you want your money returned, you’ll need to contact the ATO directly. You will be able to view your account balance and find more information on the ATO website.