16 June 2005

Removal of Six Month Restriction on Superannuation Portability

Australians will be able to more easily move their superannuation balance between funds following amendments to portability regulations announced by Federal Assistant Treasurer, Mal Brough, today.

The Government has amended regulations to ensure that from 1 July 2005 superannuation balances can be moved from one fund to another, known as portability, without having to wait 6 months from the date of the last employer contribution.

"Together with the introduction of Choice of Fund, these regulations will give Australians greater control than ever over who manages their superannuation benefits," Mal Brough said. "These changes will also make it easier for members to consolidate multiple accounts – helping them to reduce the impact of fees and charges.

"For most people, superannuation is their second largest investment after the family home and people should have similar flexibility with managing their super as they do in choosing and comparing mortgage providers for home loans.

"Australians are best placed to make decisions about their own retirement savings, and providing a more flexible environment for them to do that has always been high on the Government's agenda."

The regulations (the Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 3) will be available on the Federal Register of Legislative Instruments website at www.frli.gov.au.