New changes to superannuation come into effect
Published 04 Jul 2019
Not only does July 1st herald a new financial year, but big changes to superannuation come into effect. What are the new changes to super?
Changes to voluntary super contributions
Retirees between the ages of 65 and 74-years old can now make voluntary superannuation contributions, provided they don’t meet the work test requirements.
In order to use the work test exemption and make voluntary contributions, a person between the aforementioned ages need to meet the following conditions:
- They have no intention of being employed for 40 hours within 30 consecutive days in the financial year where contributions are made.
- The total super fund is under AU $300,000 at June 30th of the financial year prior.
- They meet the work test criteria in the previous financial year, and you haven’t given super contributions under the work test exemption before.
Those with default life insurance attached to their super will have their policies closed, unless they choose to opt in. This change is to help younger Australians to build their super balance without insurance fees cutting away at their earnings. That being said, it does bring the risk of not being insured in the instance of injury.
Another major change to insurance within superannuation is that if you or your employer haven’t contributed to your superannuation fund in 16 months or longer, any life insurance that you’re covered by as part of the fund will be deactivated. In order to keep your life insurance policy valid, you’ll need to keep up with contributions. For those in regular employment, this change isn’t likely to affect you. However, it’s always a great idea to reach out to your fund administrator to check the status and condition of your insurance.
Furthermore, funds that haven’t had super contributions for more than 16 months, with a balance with less than AU $6,000 may have their super transferred to the Australian Taxation Office. The ATO will then most likely try to consolidate the amount with your active super account, granted you have one.
If you believe you have missed out on contributions or insurance you’re owed, it’s vital to get in touch with the experts at Gerard Malouf and Partners Superannuation Disputes Lawyers. With over 16,000 successful negotiations in Court over 30 dedicated years of service, we’re confident in our ability to seek a favourable outcome for your claim. For more information, reach out to our team today.