Changes in legislation

It’s important that your hard-earned super isn’t eaten up by fees. New Government rules and regulations for super came into effect on 1 July 2019, which may impact your account with Cbus.

Inactive accounts for insurance purposes

An account is inactive if it hasn’t received any contributions or rollovers for a continuous period of 16 months or more.  If your Cbus account is classified as “inactive” then from 1 July 2019 onwards, any insurance cover you have will cease.

Unless you opt-in to retain your insurance cover, existing Death and TPD cover may stop if, in the past 16 months:

  • Your account hasn’t received any contributions, or
  • You haven’t rolled over and consolidated another account into Cbus.

This will happen regardless of your account balance, which is a change particularly for Cbus Industry super members, who used to have a $1,200 lower limit. Full details can be found in your Cbus Insurance Guide.

Depending on your membership category, in some circumstances, some or all of your cover may restart if contributions start again. 

Consider what insurance cover is right for you and how insurance premiums can affect your account balance. You must opt-in if you want to keep your insurance during a period of inactivity. You can make a contribution or a rollover to remain active.

Cbus Death and TPD insurance is designed for workers in the building and construction industries, including those working with heights and in hazardous environments.

Eligible members receive automatic Death cover until age 70.

In 2018/2019 Cbus paid out over $246 million in insured benefits.

FAQ

What is an “inactive” account?

trademen

An account is inactive if it hasn’t received any contributions or rollovers for a continuous period of 16 months or more. If your Cbus account is classified as “inactive” then from 1 July 2019 onwards, any insurance cover you have will cease. This is regardless of your account balance.

How do I keep my insurance cover if my account becomes “inactive”?

tradesman

If you would like to retain your insurance cover you can either click here or complete a Keep my insurance cover form.

What happens if my account becomes “active” again?

tradesmen

If you are an Industry Super Member and your insurance cover stops because your account has become inactive and then you start to receive on-time employer contributions again, your Death and TPD insurance will restart. However,  you may get a different cover amount than you had before depending on how long it has been since your cover stopped. You can find out more by reading the Death and disability insurance guide for Industry Super.

 

If you’re a Personal Super Member and your insurance cover stops because your account has become inactive then your cover will stop and you’ll need to re-apply to the insurer for cover if you start to make contributions. If you start to receive employer contributions then you’ll be transferred to Industry Super. You can find out more by reading the Insurance Guide Personal Super.

 

If you’re a Sole Trader Member and your insurance cover stops because your account has become inactive and then you start to receive contributions, the type and amount of cover you receive will depend on where the contribution came from, i.e. from you or an employer. Income Protection cover will not restart but it can be applied for. Your Death and TPD cover may be different than you had before depending on how long it has been since your cover stopped. You can find out more by reading the Insurance Guide for Sole Traders.

What if I don’t need insurance anymore or have it somewhere else?

Young tradie on scaffolding

We believe our members should have insurance cover to protect themselves and their families. But if it’s not right for you, you can reduce or cancel some or all of your cover whenever you like. If you change your mind and want cover later, you’ll need to provide information about your health for the insurer to consider, and you may not qualify for cover. Give us a call if you’d like some advice before you make any changes. To reduce or cancel your cover fill in this form or log into your online member account.

Inactive low account balance transfers

Super funds are now required to transfer the accounts of certain members to the ATO. This could apply to you if:

  • You don’t have insurance through your super
  • Your account balance* is less than $6,000
  • During the past 16 months your account hasn’t had a contribution or rollover*, changes to insurance cover, changed investment options, or made/renewed a binding death benefit nomination.

When accounts are transferred to the ATO, they attempt to unite them with other super accounts you may hold.

*For transfers to the ATO, this means that you have less than $6,000 invested in the Growth (Cbus MySuper) or other investment option which has not received a contribution or rollover in 16 months.

 

You should consider your personal financial circumstances, including the impact of fees on your account balance, but if you decide you wish your super to remain with Cbus, here are three simple things you can do:

1. Consolidate your super

image combining coins

If you would like to keep Cbus as your main super fund and stop it going to the ATO, one way to do so is to roll in money that you have with other funds. You should check whether you rolling money from another fund will impact any entitlements such as insurance cover. Further information on making contributions available on the Cbus website.

2. Make a small personal contribution

Image hand holding coin

If you would like to keep your super with Cbus and stop it going to the ATO you can simply make a small personal contribution. You can keep your super at Cbus by making a contribution as little as $5.

 

The limits for personal (after-tax) contributions for the 2019/20 financial year are $100,000 per year or up to $300,000 over a three year period.  If you contribute over these limits you may pay additional tax. There is more information available on how to make contributions and the various tax implications.

 

Payment by EFT Transfer

Account Name: CBUS Super Fund

BSB: 083-355

Account Number: 673909657

Reference: your member number

 

 

Direct Debit

Download the Direct Debit form from the Cbus website and send to Cbus for regular payments.

 

Personal Contribution Form

Download the Personal Contribution form for cheque  payments and send to Cbus. 

3. ATO declaration form

Image of form

If you would like to keep your super with Cbus and stop it going to the ATO simply fill in the form and send to:

 

Cbus
Locked bag 5056
Parramatta
NSW 2124

 

It's important to note the declaration that a member is not an inactive, low balance account member lasts only for 16 months.

Fee cap and refund

A fee cap of 3% now applies to certain accounts. You might be eligible to receive a fee cap refund in excess of the cap at the end of the financial year or when you exit Cbus if you have:

  • Less than $6,000 invested in the Growth (Cbus MySuper) investment option and/or
  • Less than $6,000 in total invested in all other options.

The fee cap includes the total combined amount of administration fees, investment fees and other costs not directly charged to members as a fee and which relate to the administration of investment of the assets of Cbus.

Exit fees abolished

Super funds will no longer be able to charge exit fees. You can withdraw your money or consolidate super funds without paying exit fees to access your money or transfer your superannuation to another superannuation fund. 

 

We’re here to help

Call Cbus Advice Services on 1300 361 784

Press 4 to be connected

8am to 8pm Monday to Friday AEST/AEDT

Email: advice@cbussuper.com.au

Or use our online form to request a call from Advice Services.

Read our Financial Services Guide (PDF)