The new government rules could affect your employees with superannuation balances below $6000, and those under 25 opening a new account.

The new legislation, known as Putting Members’ Interests First (PMIF), aims to protect member balances from being reduced by insurance arrangements which might not be right for them. It builds on the Protecting Your Super Package (PYSP) passed in March 2019. 

Under the new government rules:

  • Existing members on 1 April 2020 with account balances below $6000 may have their insurance cancelled unless they opt-in to keep it.
  • New members joining from 1 April 2020 need to be age 25 or older, and have an account balance of $6,000 or more, before insurance is automatically provided. They can still apply for insurance. 

Further information about the new legislation, including frequently asked questions and the options available to members, is available on our website at

Super and insurance changes

Member infomation & FAQs

What do employers need to know?  

  • On 1 November 2019 First State Super identified members impacted by the new rules and who had an account balance below $6,000. They will be written to before 1 December 2019. If they don’t opt-in to keep their insurance, it may cancel on 1 April 2020.
  • Members who join between 1 November and 1 April 2020 will be written to before 1 April 2020. If they’re impacted by the new rules and their account balance stays below $6,000, their insurance may cancel on 1 April 2020 unless they opt-in to keep it.  
  • From 1 April 2020, new members will no longer be provided with automatic insurance, 3 units of Death and Total and Permanent Disability (TPD), as part of their employer-sponsored super plan, if they are under age 25 or have an account balance below $6,000.

Importantly, members can currently apply for insurance at any time using the Application for insurance form (FSS014).

 Is there anything employers can do?

Employers are not required to do anything, however it’s important you understand the changes. All members who could be impacted by the changes will be written to.

If you think the above impacts any of your employees, you could ask them to look out for our communications. They need to let us know before 1 April 2020 if they want to keep their insurance.

Provide your employees a link to:

Importantly, know we’re here to help. Members can get simple advice at no extra cost as part of their membership if they aren’t sure of their insurance needs.

Dangerous occupation exception

As part of the Government’s changes, we may elect to apply the ‘dangerous occupation exception’. This exception allows us to exclude certain members from the new rules.

We are currently working with a selection of employers to identify members who qualify. Where it’s been established a member meets the criteria and the exception will be applied, we’ll write to them to confirm this. We will also let you know.

Importantly, if a member wants to be sure they keep their insurance, it’s a good idea they opt in to keep it. Information on how to do this, as well as how to reduce or cancel their insurance, can be found at


If you have any questions, please contact your Relationship Manager or our Employer Relations team on (02) 4298 6013.