Protecting Your Super legislation

The Australian Government has passed new legislation, the ‘Protecting Your Super’ package, which may impact the insurance and fees for your LGS account.

What are the insurance changes?

From 1 July 2019, any super account that has not received any type of contribution for 16 months or more will be considered ‘inactive’ and any insurance within the account will be cancelled.

The legislation seeks to protect inactive superannuation accounts from being eroded by insurance premiums for unwanted or unneeded cover.

How do I stop my insurance from being cancelled? 

If you wish to keep your insurance cover, you can:

  • Log in to Member Online or the LGS mobile app.
  • Tell us in writing that you wish to continue receiving insurance in your LGS account (i.e. 'opt-in'). Alternatively, you can complete the Opt in to insurance form and either take a photo with your smartphone and email it to us at or scan and email or mail it to us at:

    Local Government Super
    PO Box N835
    Grosvenor Place NSW 1220

  • Make a contribution of any amount into your account, either through your employer, direct debit or BPAY (details within the ‘Payment options’ tab in Member Online once you log in)

We must receive your written consent to avoid cancelling your cover against your wishes.

You need only opt-in to having insurance once. After you have opted-in, your insurance will not be cancelled in the future even if no contributions are received for 16 months or more.

If you do not opt-in, your account will need to receive a contribution at least every 16 months to ensure your account stays active and avoids the risk of future insurance cancellation. You can set up regular contributions either through direct debit or through your employer.

What are the fee changes?

From 1 July 2019, the exit fee of $27.00 will be removed and you won’t be charged for withdrawing from or closing your account.

For members with an account balance of less than $6,000, certain fees and costs will be capped at 3% of your balance. The fees that will be capped are administration fees, investment fees and indirect costs.

Any amount charged in excess of this cap will be refunded.

This is to prevent super accounts with low balances from being eroded by fees.

Inactive low balance accounts will be transferred to the ATO

Accounts that are considered low balance and inactive will be transferred to the Australian Taxation Office (ATO), so that the ATO can then roll them into their most recent 'active' account. Accounts that are in this category are: 

  • Under $6,000 and;
  • Have not received contributions or rollovers for 16 months and/or
  • Have not had investment options changed, insurance cover changed or binding beneficiary nominations updated. 

How do I stop my account from being transferred to the ATO?

Your have a few options. You can:

  • Make a contributions to your account
  • Rollover another super balance into your account
  • Make an investment switch
  • Change your insurance cover, or
  • Make or change a binding beneficiary nomination.

Need more information?

If you have any questions, please call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.


The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.