The federal government has introduced legislation to protect Australians at risk of seeing the value of their superannuation accounts erode.
A bill has been presented to the House of Representatives offering fee protections, allowing tailored insurance arrangements and assisting the consolidation of multiple super accounts.
"We must never forget the most important foundation-stone of superannuation: your superannuation is your money, not the government's, not the industry's," Federal Revenue Minister Kelly O'Dwyer told parliament on Thursday.
"Almost every week someone writes to me to express their shock and disappointment at realising their hard-earned retirement nest egg has been eaten away."
Fund performance means nothing if account values are eroded down to zero, the government argues.
Sharing her own story, Ms O'Dwyer said she had three super accounts by the time she started her first full-time job.
"By the time I really focused on it I found I had five accounts, three of which had been eroded to virtually nothing through fees charges and insurance premiums."
Among other measures to reform account fees, the bill will prevent super fund trustees charging fees exceeding three per cent of MySuper accounts containing less than $6000.
It will also prevent trustees from providing opt out insurance to new members aged under 25 years, those with balances less than $6000 or with inactive accounts.
It will require the transfer of all super savings below $6000 to the taxation commissioner if certain accounts have been inactive for continuous periods of 13 months.
