Wed 09 May, 2018

What’s new for Super in the 2018/19 Budget?

On 8th May, the Government laid out the budget, which sets out the economic and fiscal outlook for Australia. As usual, superannuation got a mention, so we’ve picked out the most important points that will be valid for your super or SMSF.

Here’s what’s been mentioned for superannuation:

1. NO change to Franked dividends

The Government will continue to allow tax refunds for excess franking credits.

2. SMSF Audits held every 3 years

SMSF audits will be held every 3 years from July 1 2019 instead of per annum. This will be applicable to all SMSFs that have a proven track record of tip-top compliance for at least 3 years.

3. Increase SMSF members from 4 to 6

As of 1 July 2019 max number of 6 members will apply. This may be good news for families who want to add members to their exisiting SMSFs.

4. Work Test exemption for over 65s with less than $300k in super

From 1st July 2019, people aged over 65 will not have to meet the work test requirements in order to contribute via Concessional Contributions and Non-Concessional Contributions.

5. Ban Exit Fees

Anyone exiting a fund from 1st July 2017, will no longer be charged fees when rolling out of an APRA fund. At Squirrel, we don’t charge exit fees to our clients, however it’s great to see that the market is now following suit.

6. Ban default life insurance for under 25’s

This new role is for both  industry and retail funds.

7. ATO superannuation consolidation program

All inactive super accounts with less than $6k will be transferred to the ATO and then linked to the members active account where possible. This is great news for anyone with ‘lost super’!

More information on the budget can be read here.

What did you think of this budget? If you have any questions about SMSFs, contact our team today.