Significant government changes have come into place during 2019/20. The most significant of these is a fundamental change to superannuation access rules in light of the world pandemic.
Early access to super
Early access to super formed part of the Government’s stimulus package to protect Australians financially impacted by Coronavirus. It allowed people to access up to $10,000 of their super in the first period to 30 June 2020, with a further $10,000 possible up to 31 December 2020, if from 1 January 2020 they were:
- Made redundant.
- Receiving certain government payments.
- Had hours of work or income reduced by 20% or more.
- Had their business suspended or turnover reduced by 20% or more.
This change is a temporary measure only with final applications closing 31 December 2020.
Protecting Your Super
Changes announced last year in the Protecting Your Super legislation came into effect as of 1 July 2019 and included:
- Inactive accounts (accounts that have not had a contribution or member activity for 16 months) with less than $6,000 automatically transfer to the ATO and their insurance cover ends.
- Fees capped at 3% for account balances of $6,000 or less.
- A ban on charging exit fees for super accounts.
- Insurance for members under 25 became ‘opt in’ rather than ‘opt out’ as of September 2019, except for people working in dangerous occupations. Funds had to apply for the exemption.
If you need more information on any of these changes, simply call us on 1300 13 44 33.