As of 1 July 2019 new legislation regarding several areas of superannuation will come into effect. You may have already been contacted by your superannuation provider, however if you haven’t you need to be aware of the below changes.
Cancelling Insurance in Super
If you have insurance attached to a super account that has not received a contribution or rollover since 1 March 2018, your insurance will automatically be cancelled from 1 July 2019.
Super funds will be required to cancel insurance policies where no contribution or rollover is received for 16 months, unless you inform your super fund that you want to keep the cover.
Consolidating Small Super Accounts
If you have an account with less than $6,000 and you have not interacted with the account since 1 March 2018 (e.g. updated your details or beneficiary nominations, made a contribution or made a rollover), the balance will be rolled into an ATO account. This will then be consolidated with any other small inactive accounts and transferred into an active account by the ATO.
If you want to keep a small, inactive account open, you will need to notify the ATO, or interact with your account at least every 16 months.
Work Test Exemption
If you are aged 65 – 74, the Work Test requires at least 40 hours of gainful employment (not volunteer work) within any 30 day period of that financial year, before you can make a voluntary superannuation contribution.
From 1 July, if you have less than $300,000 in your super at 30 June following retirement, you are able to make voluntary super contributions in the following financial year without meeting the Work Test. This exemption can only be used once per person.
Capped Super Fees
From 1 July 2019, exit fees on super accounts will be banned, and any account with less than $6,000 at 30 June will have fees capped at 3% of the account balance.
If you’re unsure if any of the above will affect you or you are confused by the upcoming changes, one of our friendly staff would be more than happy to help.
Enquire here or phone our office to talk about how we can assist you.
(03) 5445 4777 (Head Office – Bendigo) or
(03) 8621 8100 (Melbourne Office)