2018 Federal Budget

Super News

The 2018 Federal Budget, issued on the 8th of May by Treasurer
Scott Morrison, contained a range of proposed changes for superannuation.

The superannuation measures announced aim to help Australians make the most of their retirement years, whilst protecting the retirement savings of young people and those with low
superannuation balances.

Preventing concessional cap breaches for high income earners

From 1 July 2018, the Federal Government will allow individuals with multiple employers and an income greater than $263,157 p.a. to nominate wages received from some employers as exempt from Superannuation Guarantee (SG). This is in order to avoid breaching concessional contribution caps.

 

Insurance within super

Insurance cover within superannuation will change from a default arrangement to an opt-in basis for:

  • new members under 25 years of age;
  • members with low account balances (less than $6,000); and
  • members whose accounts have not received a contribution in the past 13 months.

From 1 July 2019, members will have to opt into insurance if their account meets the above criteria.

Banning exit fees

To encourage account consolidation and reduce erosion by fees and insurance premiums, the Government will ban exit fees on all superannuation accounts.

Capping exit fees

Effective 1 July 2019, super fees (administration and investment fees) will be capped at three percent p.a for super balances below $6,000.

Changes to low balance and inactive accounts

Member super accounts with balances below $6,000 and that have not received a contribution in 13 months, will be deemed to be 'inactive' and transferred to the Australian Taxation Office (ATO).

Work test exemption for retirees

From 1 July 2019, Australians aged 65 - 74 with a total superannuation balance below $300,000 will be able to make voluntary non-concessional contributions in the first year of their retirement. This will be available from the end of the financial year in which they last met the work test.

For further information refer to 2018 Budget fact sheet outlining work test exemptions.

Personal income tax cuts

The Budget includes a range of additional measures, which whilst they do not directly impact superannuation, will have an impact on an individual’s income and/or financial position in retirement.

For further information refer to 2018 Budget fact sheet on personal income tax cuts.

It's important to note that the implementation of these proposals are dependent on the election outcome, consultation with industry and successful passage of legislation.

The information contained in this briefing will not be effective until it is passed into law. ESSSuper has made reasonable efforts to ensure the accuracy of this briefing but does not accept liability for acts or omissions based on its content. Emergency Services Superannuation Board ABN 28 161 296 741 (ESSB), the Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (ESSSuper). Before making a decision about an ESSSuper product or service please consider our Product Disclosure Statement (PDS) that is available on our website or by calling us on 1300 650 161 (Emergency services members) 1300 655 476 (State super members).


Have you registered for Members Online?

Members Online allows you to gain full access to your super account securely, anytime, anywhere.

Register Now >


2019 Seminar Program

ESSSuper holds a range of free seminars, run by people who understand the type of work you do and who are the experts in your fund.

Register Now >


Multiple super funds?

ESSSuper members have the option to consolidate other super via Members Online. Consolidate now in just a few simple steps.

Get Started >


Thinking of retiring?

Book an appointment with one of our Member Education Consultants to find out if you’re doing everything you can with your super to ensure you'll have the lifestyle you want in retirement.

Book an appointment >


Do something super for your spouse.

As an ESSSuper member, your spouse or de facto partner is eligible to open an ESSSuper Accumulation Plan account.

Learn more >


FOLLOW US


Back to Super News

Feedback & suggestions