Small super accounts have received a bit more protection as of 12th March, with new legislation receiving assent.

Super fund trustees are now prohibited from charging fees totalling more than 3% of a super account with a balance of less than $6,000,

Inactive superannuation accounts will also have to be transferred to the ATO where the owners are more likely to find them before fees and default insurance eat them up.

I often meet young people who’s first experience of the super system is a bad one, where their hard-earned super balance is eroded or completely gobbled up by fees when the account only has a few hundred dollars in it from holiday work. Some of these changes will go a long way helping this situation.

If you would like some advice on where to start off your super, or your child’s super with zero fees please feel free to contact us. No tricks I promise!