Superannuation will now follow Australians when they change jobs after new laws came into effect on Monday.
Superannuation accounts will now be stapled to workers, ensuring new employers pay super contributions into existing accounts in a bid to avoid expensive double ups and lost money.
Treasury estimates $2.8 billion will be saved from duplicate fees and lost interest returns over the next decade, with around 850,000 duplicate accounts created every year.
Employees are still able to nominate a different super account.
The new laws address a key recommendation of the banking royal commission and build on measures implemented under the Your Future, Your Super reforms.
The government estimates these reforms will save Australian workers almost $18 billion over the next decade.
© AAP 2021
Image: Milleflore Images / Shutterstock.com