MTAA Super and Tasplan have entered into a binding Memorandum of Understanding to investigate a merger of the two funds, which if successful would create a national superannuation fund with more than $22 billion in Funds under Management and 328,000 members.

Tasplan is a multi-industry profit-for-members super fund, managing $9.5 billion in assets for members Australia-wide, while MTAA Super is a national industry-based super fund that has served the motor trades and allied industries for 30 years, managing close to $13 billion.

The MOU will allow a potential merger to be thoroughly assessed by all parties, with the best interests of members being the key deciding factor.

Fund Chairs, Naomi Edwards of Tasplan, and John Brumby of MTAA Super, said this was an exciting opportunity to create one fund that would provide services nationally to the combined membership, with priority on providing quality services and outcomes for members.

“We anticipate that the increased scale will deliver efficiencies that can be passed on to members by way of product and service improvement, competitive fees and returns,” Ms Edwards and Mr Brumby said.

“While there is still much work to be done, we are excited by the prospect of building a fund of significant scale, enjoying widespread national membership and offering further improvements in benefits to our members over time.”

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MUMS AND DADS at home on parental leave, and other Australians taking a break from the workforce, only have four days left to check if they’re affected by changes to super and insurance coming into effect on 1 July.

Industry Super Australia chief executive Bernie Dean urged Australians to get in touch with their super fund if they were concerned about changes to their insurance and check if they will be affected.

The changes, part of the Federal Government’s Protecting Your Super package, will see the automatic consolidation of all low balance ($6,000 and less), inactive accounts to the ATO, and the cancellation of insurance attached to all super accounts that have been inactive for 16 months or more.

Mr Dean said while the changes should deliver significant boosts to people’s super balances, there were some catches to look out for.

“There are some real positives for people in these changes and we expect to see more money for consumers as multiple accounts are consolidated and insurance on those old accounts cancelled,” Mr Dean said.

“There’s a few catches people should be aware of though, especially the parents or others out there who might have been out of the paid workforce for a while and haven’t had any super contributions.

“Getting insurance through your super can be really cost effective and a good way for people to get covered where they might not otherwise be able to afford it, but it can also see super balances eroded if people are paying for premiums for insurance they don’t need.”

Mr Dean said super funds have been contacting members letting them know about the changes, and how to keep their insurance attached to their account if they want to.

“With only days to go until the changes kick in, this is one of those times people really need to think about their super and not throw the letter from their fund straight in the bin, or mark the email as spam,” he said.

“Straightening it out is easy – if you decide you do want to continue the insurance cover, just let your super fund know.

“If you’re worried or don’t know if you’ll be affected give your super fund a call. With only days to go until 1 July it’s vital people get engaged with their super now and don’t put it off to another day.”

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THE NSW Emergency Services Levy Insurance monitor, Allan Fels, has today issued guidelines to insurers to prevent consumers being over-charged Emergency Services Levies.

Emergency Services Levies (ESL) are added to premiums by insurers to recover the contributions they are required to make to help meet the costs of the emergency services providers in NSW.

Professor Fels warned insurers that the Monitor would be closely scrutinising insurers to ensure consumers were not charged excessive amounts.

“The guidelines send a clear warning to insurers that the Monitor will use its statutory information gathering powers to obtain all the data it needs to make these assessments," Prof. Fels said.

“And we will require an auditors’ review report in relation to this data to ensure NSW consumers are not overcharged on their insurance.”

If there is any over-collection, the Monitor will require that refunds are made to policy holders, or if this is impracticable that the over-collection is returned to the Chief Commissioner of State Revenue.

“Whilst over-collection may be inadvertent, this does not relieve insurers of the requirement to make good on any over-collection amount,” Prof. Fels said.

Most insurers are well-aware of the Monitor’s scrutiny of over-collections in the past and have been cautious to avoid collecting more than they are authorised.

However, in 2015-116 and 2016-17 the Monitor identified over $1.6 million in over-collections.

Five smaller insurers were referred to the Chief Commissioner of State revenue for debt recovery action for amounts totalling $29,468.

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SUBMISSIONS are open now for the inaugural Trans-Tasman Innovation and Growth Awards, a showcase of emerging businesses in Australia and New Zealand that demonstrate outstanding innovation, growth and impact.

Regional Development Australia is encouraging innovative small-to-medium businesses throughout Australia to enter the awards.

According to RDA, eligible applicants will have:

• secured investor funding and a market cap under $A100 million
• established strong roots in Australia and New Zealand
• a compelling growth story to share.

Four winners will each receive a $20,000 cash prize, media exposure and an exclusive alumni package of corporate support – including funding to participate in two 2020 summits.

Submissions close July 5, 2019.

For more information: https://www.accenture.com/au-en/about/events/trans-tasman-innovation-growth-award

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