The Government’s plan to effectively close Eligible Rollover Funds (ERFs) is estimated to raise $143 million for the Budget. Late last year the Government announced it would move to effectively shut down ERFs by mid-2021. This would be done in three stages, first ERFs would be allowed to voluntarily transfer… Read More »Closing Eligible Rollover Funds to raise $143 million for the Budget
Having the the Superannuation Guarantee rate frozen at 9.5% has cost the median worker more than $4,000 over the past five years, and the losses are likely to continue, analysis by Per Capita has found. The Superannuation Guarantee rate has been frozen at 9.5% for several years, though it’s legislated… Read More »Frozen Super Guarantee rate has cost median worker $4,333 so far
ACOSS has recommended freezing the Super Guarantee rate at 9.5%, while winding back superannuation tax concessions to fund health and aged care services. The Australian Council of Social Service (ACOSS), in a submission to the Review of Retirement Income, and drawing on the work by the Grattan Institute, recommends the… Read More »Keep SG rate at 9.5%, reduce tax concessions to fund health: ACOSS
Software maker BGL has challenged data in ASIC’s fact sheet sent to new SMSF trustees, finding the annual cost of running an SMSF is much lower. Last year ASIC announced it would be trailing sending a fact sheet to new SMSF trustees. This fact sheet included a number of warnings,… Read More »ASIC SMSF fact sheet “misleading”, BGL analysis finds
New economic modelling by the Grattan Institute finds that around 80% of the cost of increasing the Super Guarantee rate is passed on to workers as lower wages. Part of the ongoing debate about increases to the Super Guarantee rate has been about how much, if any, of the cost… Read More »80% of cost of Super Guarantee rate increases passed on as lower wages
The Government has released draft legislation for consultation in response to 22 recommendations, and ‘additional commitments’, from the Banking Royal Commission. Treasurer Josh Frydenberg said the Government is “on track” to have almost 90% of the Royal Commission recommendations at least introduced to Parliament – not necessarily legislated – by… Read More »Draft legislation for 22 Banking Royal Commission recommendations released
Changes to the system of setting default super funds are coming by the end of 2020, according to Assistant Minister Jane Hume, though it’s unclear if the Government has settled on a model to implement. Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology, has flagged changes to… Read More »Changes to default super coming before end of 2020: Assistant Minister
Labor may be more open to expanding super choice rules than unions and industry super funds. There is currently a Bill before Parliament – the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 – which would expand the number of employees who can choose which super fund receives their… Read More »Labor may support super choice expansion, despite union opposition
The unmet financial advice needs of older Australians necessitates a customer centric advice framework, says SMSF Association CEO John Maroney, drawing an analogy to how health care is provided. Maroney raised the issue of unmet financial advice making it harder for older people to plan for their retirement, in a… Read More »Unmet financial advice requires customer centric focus: SMSFA
Treasury has released draft legislation that would expand Single Touch Payroll to allow employers to report child support information. Single Touch Payroll (STP) is the system for employers to electronically report payroll and superannuation information to the ATO. Treasury says the STP platform was set up so it could be… Read More »Single Touch Payroll to be expanded to report child support information