Draft legislation to make super more flexible for older people released

The Government has released draft legislation which it says will make superannuation more flexible for older Australians, by changing the work test, bring-forward rule, and spouse contributions. Under the proposed changes, released for consultation, people aged 65 and 66 won’t need to meet the ‘work test’ to make voluntary super contributions. Also, the non-concessional contribution… Continue reading Draft legislation to make super more flexible for older people released

38% of recent retirees struggling financially, survey finds

Research released by Industry Super Australia has found that almost 40% of recent retirees struggle financially, which the group is using to support calls for a higher Super Guarantee rate. 38% of the survey respondents who had recently retired said they were either living on a very tight budget – with only enough for essentials… Continue reading 38% of recent retirees struggling financially, survey finds

Super Guarantee amnesty for employers passes Parliament

The Government has succeeded in passing an amnesty for employers who haven’t paid the Super Guarantee they owe to workers. This is the second attempt by the Government to pass such an amnesty; after announcing the original 12 month amnesty would apply from the date of announcement, the Government was then unable to pass it… Continue reading Super Guarantee amnesty for employers passes Parliament

Increasing SMSF member cap from 4 to 6 remains Government policy

The Government remains committed to increasing the SMSF member cap from 4 to 6, despite it being almost two years since the change was announced. Jane Hume, the Assistant Minister for Superannuation, Financial Services and Financial Technology, used a speech to the SMSF Association Annual Conference to say that increasing the SMSF member cap remains… Continue reading Increasing SMSF member cap from 4 to 6 remains Government policy

Super Guarantee under attack from “unholy coalition”: Albanese

The currently legislated increase to the Super Guarantee rate is under attack from an “unholy coalition”, says Labor Leader Anthony Albanese. Albanese used his latest ‘vision statement’ speech to criticised groups opposed to increases in the Super Guarantee rate. “At the moment we are witnessing an unholy coalition attacking the increase in the Superannuation Guarantee.… Continue reading Super Guarantee under attack from “unholy coalition”: Albanese

Impressive start for super fund returns in 2020, up 1.9% in January

Investment returns for superannuation funds are off to an “impressive start” in 2020, returning 1.9% for the month of January, says Chant West. Following from a “stellar” 2019 – which saw the median growth fund returning 14.7% – super funds have recorded a strong start to the 2020 calendar year. According to Chant West, the… Continue reading Impressive start for super fund returns in 2020, up 1.9% in January

ASIC finds “common problems” with PYSP super fund communications

An ASIC review of communication sent by super funds to members about the Protecting Your Super reforms has found some “common problems”. The ‘Protecting Your Super Package’ (PYSP) reforms were aimed at protecting small superannuation accounts from erosion due to fees and insurance, and reducing the number of unintended small accounts. This was done by… Continue reading ASIC finds “common problems” with PYSP super fund communications

Regulators welcome larger role for ASIC in super sector

ASIC and APRA have both welcomed proposed changes which would increase ASIC’s role in regulating the superannuation sector. One of the recommendation of the Financial Services (Banking) Royal Commission was for ASIC and APRA to be co-regulators of superannuation. This would involve ASIC becoming the ‘conduct regulator’, while APRA remains the prudential and member-outcomes regulator.… Continue reading Regulators welcome larger role for ASIC in super sector

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Transfer Balance Cap expected to be indexed to $1.7 million in 2021

The ATO anticipates that the general Transfer Balance Cap will be indexed in 2021, after it was not indexed for 2020. The eventual indexation of the Transfer Balance Cap to $1.7 million will make the system more complicated. Like many superannuation caps and thresholds, the Transfer Balance Cap is subject to indexation. Starting at $1.6… Continue reading Transfer Balance Cap expected to be indexed to $1.7 million in 2021

ATO SMSF SMS notification system now live

The ATO’s system for notifying SMSF trustees about changes to their SMSF is now live. SMSF trustees will now be notified, by text or email, when details of their SMSF held by the ATO are changed. The notifications will cover changes to the financial institution account details, electronic service address, authorised contact, or members of… Continue reading ATO SMSF SMS notification system now live

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