Regulation Impact Statement – Department of the Treasury
On 21 June 2018, the Government introduced the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 to limit the erosion of superannuation balances, particularly for low balance and young members.
The amendments cap certain fees on superannuation accounts with balances of less $6,000 to protect them from disproportionately high fees. Under the amendments, trustees are prevented from providing opt‑out insurance to new members aged under 25 years, members with balances below $6,000 and members with inactive accounts.The amendments also ban exit fees on all superannuation products and strengthen the ATO’s role in reuniting small, inactive balances.
The Treasury prepared a Regulation Impact Statement (RIS), which the Office of Best Practice Regulation (OBPR) assessed as compliant.
The Treasury estimates the average annual regulatory cost at $99.9 million. The OBPR has agreed with this estimate.