Posts made in June, 2018

Proposed Superannuation Changes for the Federal Budget 2018

Changes to superannuation were announced in the Federal Budget for 2018. There are some positive changes for retirees moving forward. However, these super changes are not yet enforced but it is well worth considering how your retirement plans might be affected. The proposed changes include: Protecting your super package                                          Fee changes In a move designed to help stop fees eroding balances, the Government will: ban superannuation funds from charging exit fees on any superannuation account; and introduce a 3% annual cap on fees in superannuation accounts with balances below $6,000. Insurances The government is proposing to change taking out life insurance inside super to an opt-in basis for people: with super balances of less than $6,000 who are under 25 whose accounts which haven’t received any contributions in the last 13 months. New ATO initiative The Government also introduced a requirement to transfer inactive accounts with balances below $6,000 to the ATO. The ATO will then proactively seek to reunite these inactive accounts with an active account.  Again, there is likely to be some practical implementation issues which would need to be worked through. These measures will take effect from 1 July 2019. Pension Loans Scheme The Pension Loan Scheme is essentially a government’s version of the reverse mortgage scheme. From 1 July...

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