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Protecting Your Super Package (PYSP) legislation

The Australian Parliament has passed new legislation, the ‘Protecting Your Super’ package, which takes effect on 1 July 2019.

The package is designed to reduce erosion of superannuation account balances by:

  • making changes to the fees funds can charge,
  • establishing rules around when insurance cover can be provided to members with inactive accounts, and
  • facilitating the consolidation of low balance inactive superannuation accounts.

This page contains information about how Sunsuper members will be affected.

What are the fee changes?

From 1 July 2019, the exit fee will be removed and members won’t be charged for withdrawing from or closing their accounts in any circumstances. 

If you have an account balance of less than $6,000, administration fees, investment fees and indirect costs will be capped at 3%.

Any amount charged in excess of this cap will be refunded on exit or at the end of financial year. This is to help prevent super accounts with low balances from being eroded by fees.

What are the insurance changes?

From 1 July 2019, if your account has not received an eligible contribution2 for 12 months1 or more, any insurance associated with your account will be cancelled.

To prepare for these changes, if your account has not received an eligible contribution2 for greater than 6 months at 1 April 2019, we’ve sent you a letter or email to let you know of the changes and provide information on how to retain your insurance cover.
If you’re forecast to have not received an eligible contribution2 for 12 months or more at 1 July, we’ll send you further communications prior to this date, advising that your insurance will cease and let you know the options to keep your cover.

From 1 July, we’ll continue to monitor account activity and send you a letter if your account has not received an eligible contribution2 for 5, 8 or 11 months to ensure you’re aware of the options for retaining cover.

How to keep your insurance cover.

Keeping your insurance cover is as simple as completing the online form.

We’ll record your request and confirm in writing that your insurance cover will continue. Make sure you carefully consider the effect of insurance premiums on your account balance before making a decision.

Please note: We can’t accept a request to keep your super over the phone.

Keep your insurance cover form

Consolidation of low balance inactive accounts

From 1 July 2019, Super-savings accounts with a balance under $6,000 must generally be transferred to the ATO unless the member has in the previous 16 months:

  • Received a contribution, rollover or automatic transfer from another fund,
  • Made an investment choice,
  • Changed their insurance cover,
  • Made or amended a binding beneficiary nomination, or
  • Provided written notice to the ATO or to Sunsuper that they do not wish for their Sunsuper account to be transferred.

The first transfer to the ATO will be made on or before 31 October 2019.
If your account is identified as a low balance inactive account, we’ll contact you with information about how you can choose to stay with Sunsuper.

Need more information?

If you have any questions or would like to make an appointment with a financial planner, please call us on 13 11 84 between 8:00 AM to 6:30 PM (AEST), Monday to Friday.


1 The Protecting your Superannuation legislation establishes a maximum period of 16 months. As permitted by law, Sunsuper has set an inactivity period of 12 months of not receiving an eligible contribution, to better protect our members’ balances from being eroded by insurance premiums. 
2 Eligible contributions include Superannuation Guarantee, additional Employer contributions, personal contributions (including voluntary contributions and contributions made by a spouse), rollovers and automatic transfers from other funds. They do not include co-contributions or the low income super tax offset.