Treasury Laws Amendment (Putting Members' Interests First) Act 2019 (79 of 2019)

Schedule 1   Low-balance accounts and members under 25

Part 2   Application

8   Application of section 68AAB

Application

(1) Section 68AAB of the Superannuation Industry (Supervision) Act 1993, as inserted by item 1 of this Schedule, applies on and after 1 April 2020 (the commencement day ).

Notice to members who have a low balance on 1 November 2019

(2) Each trustee of a regulated superannuation fund that offers a choice product or MySuper product under which a benefit may be provided by taking out or maintaining insurance must ensure that:

(a) on 1 November 2019, each member of the fund who has an account in relation to one or more of those products with a balance that is less than $6,000 is identified; and

(b) on or before 1 December 2019, each of the members of the fund identified under paragraph (a) is given notice in writing in accordance with subitem (3).

(3) The notice must:

(a) state that, on and after 1 April 2020, a benefit will not be provided to the member under the product by taking out or maintaining insurance if:

(i) the member has an account balance with the fund that relates to the product that is less than $6,000; and

(ii) on or after 1 November 2019, the member has not had an account balance with the fund that relates to the product that was equal to or greater than $6,000; and

(iii) the member has not elected that the benefit will be provided to, or in respect of, the member under the product by taking out or maintaining insurance, even if the account balance with the fund that relates to the product is less than $6,000; and

(b) set out the method by which the member can make such an election in writing.

(4) An election under paragraph (3)(b) has effect on and after the commencement day as if it were an election made under subsection 68AAB(2) of the Superannuation Industry (Supervision) Act 1993.

(5) Despite subitem (2), a trustee of a regulated superannuation fund that offers a choice product or MySuper product does not have to ensure that a notice is given to a member of the fund to whom it would otherwise be required to be given under that subitem if:

(a) before 1 November 2019, the member has given the fund notice that the member elects to have one or more benefits provided under the product or the products held by the member by taking out or maintaining insurance; and

(b) the only benefits provided to the member under the product or products held by the member by taking out or maintaining insurance are covered by the election.

The notice mentioned in paragraph (a) has effect on and after the commencement day as if it were an election made under subsection 68AAB(2) of the Superannuation Industry (Supervision) Act 1993.

Notice to members who begin to hold product after 1 November 2019

(6) Each trustee of a regulated superannuation fund that offers a choice product or MySuper product under which a benefit may be provided by taking out or maintaining insurance must ensure that each person who acquires an interest in the product after 1 November 2019 and before the commencement day is given notice in writing:

(a) stating that the benefit will not be provided on and after 1 April 2020 if:

(i) the member has an account balance with the fund that relates to the product that is less than $6,000; and

(ii) on or after 1 November 2019, the member has not had an account balance with the fund that relates to the product that was equal to or greater than $6,000; and

(iii) the member has not elected that the benefit will be provided to, or in respect of, the member under the product by taking out or maintaining insurance, even if the account balance with the fund that relates to the product is less than $6,000; and

(b) setting out the method by which the member can make such an election in writing.

(7) An election under paragraph (6)(b) has effect on and after the commencement day as if it were an election made under subsection 68AAB(2) of the Superannuation Industry (Supervision) Act 1993.