Inactive Super Account

Updated: May 10, 2019





Have you recently received a letter from your super fund about an inactive super account? The federal government has passed the “Protecting Your Super” (PYS) legislation package which is designed to ensure super members’ account balances are not eroded by insurance premiums in inactive super accounts.


If your account has been inactive for a continuous period of 16 months, the insurance cover can only be continued if you elect to do so.



What does an inactive account mean?


  • Your account has not received employer contributions (superannuation guarantee, salary sacrifice or voluntary employer contributions)

  • No non concessional contributions (after tax money) have been received

  • No rollovers from other super funds have been made to this account




Is this an issue for me?


It will depend on your circumstances. If you are ineligible for insurance due to medical conditions or dangerous work occupations, any cover you may have in an inactive super account could be very important to maintain.


If you have experienced a change in work circumstances such as in between jobs or starting as a sole trader, it may be that your account has not received contributions for some time. Again, the cover in your super fund may be quite valuable to you if you have debts or dependants. Seek advice to ensure you understand your options as soon as possible. It is unlikely the cover can be re-instated once it has cancelled.




What if my cover is paid for as a rollover via a super platform?


You will receive a letter from your super platform if you have not had any contributions going into this account. Again your super trustee will provide you with your options and instructions on how you can maintain this cover.




Can I make contributions to keep this cover in place?


Yes, but be mindful of the superannuation caps. You can contribute up to $25,000 per annum to super as a concessional contribution (but this includes employer contributions and salary sacrifice). You can also contribute up to $100,000 per annum as a non concessional contribution (personal member contribution). You may not need to make a contribution if your account balance has sufficient funds available.


Many super funds are writing to members now as this legislation will take effect from 1 July 2019. Insurance via super is a common strategy and may be suited to your circumstances and budget. Please ensure you read any correspondence received by your fund and ask for help if you are not sure what to do.





This information contained in this document has been provided as general advice only. The contents of this document have been prepared without taking account of your personal objectives, financial situation or needs. You should, before making any decision regarding any information, strategies or products mentioned in this document, consult with your GPS Wealth Ltd financial adviser to consider whether it is appropriate having regard to your own objectives, financial situation and needs

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Amplify Wealth Management Pty Limited, ABN number 63 603 717 791 is a Corporate Authorised Representative (No: 1002040) of GPS Wealth Pty Ltd ABN 17 005 482 726, AFSL 254544.


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General Advice Warning:
Any general advice or information is prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.