At the time of writing, Budget changes to super were making their way through parliament. Although they are yet to be set in law, these changes are likely to go ahead.
Don’t let the tax office take your super
The Federal Budget included proposals to transfer inactive super accounts with less than $6,000 to the ATO from 1 July 2019. If you have not had a contribution to your super for 13 months or more that could be you. To stay in control of your money make REI Super your fund of choice and roll in any other super you have. If you are not receiving employer contributions – make a personal contribution. Even $1 a year will keep your super invested in REI Super.
Exit fees and insurance changes
The proposed changes include capping of fees (maximum 3%), a banning of exit fees (which means you won’t suffer any losses from rolling all your super into one fund) and opt-in insurance for accounts with less than $6,000 and for members under 25 years. Currently all members receive default insurance when they join. Under the proposed changes, in future members under 25 or with less than $6,000 in their super would need to choose to have insurance.
Work test changes
For people aged 65-74 with superannuation balances below $300,000, under the proposed changes there would be a limited exemption from the work test. Currently you must work at least 40 hours in 30 consecutive days in a financial year for your super fund to accept contributions. This means more opportunity to build your super balance ahead of retirement.
Members with a high income
Under the proposed changes, high income earners with multiple employers would be able to exclude income from some employers to avoid going over the $25,000 cap for pre-tax (‘concessional’) contributions.
Please note:
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs.
Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions.
We recommend that you seek help from a licensed financial adviser before acting on any information contained in this article. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies.
This information has been prepared and published by REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL. 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super.
The REI Super Helpline and the REI Super website are provided by Mercer Outsourcing (Australia) Pty Ltd ABN 83 068 908 912 and Mercer Financial Advice (Australia) Pty Ltd (MFA) ABN 76 153 168 293, Australian Financial Services Licence (AFSL) #411766