If you’ve been scrolling through your news feed or chatting with friends lately, you might have heard some alarming rumours about changes to your superannuation.
Headlines warning of a ‘1 June rule change’ and claims that you won’t be able to access your super until you’re 70 have been making the rounds. But before worrying about your retirement nest egg, let’s separate fact from fiction.
The Australian Taxation Office (ATO) has set the record straight: the superannuation preservation age and withdrawal rules will not change on 1 June.
Despite what some online articles and social media posts claim, the rules about when and how to access your super remain the same.
Emma Rosenzweig, ATO deputy commissioner for superannuation, has confirmed: ‘This is false. The maximum preservation age (the age when you can access your superannuation savings on retirement) is 60 for anyone born from 1 July 1964.’
So, if you were born after July 1964, you can still access your super at 60, provided you meet the usual conditions of release (such as retiring or reaching age 65).
There are no plans to increase the preservation age to 70 or to limit lump sum withdrawals to 50 per cent of your balance.
Unfortunately, misinformation spreads quickly online, especially regarding retirement savings. Some websites use clickbait headlines to attract visitors, often targeting older Australians and Centrelink recipients.
Their goal? To generate advertising revenue or, in some cases, to trick people into giving away personal information.
Services Australia’s Hank Jongen warned: ‘Their main purpose is likely gaining advertising revenue through website traffic, rather than phishing for personal information.
‘However, people should not give out their personal information, including myGov sign-in details, to access fake payments or payment increases.’
If you see a headline that sounds too shocking or dramatic to be true, always check the source. The ATO website, your super fund, or a licensed financial adviser are your best bets for accurate information.
What superannuation changes are actually happening?
While the 1 June rumours are false, some genuine superannuation changes are coming up from 1 July 2024 that you should know about:
1. Super guarantee rate increase
The compulsory superannuation guarantee employers pay will rise from 11.5 per cent to 12 per cent of your ordinary time earnings. This is the final step in a series of legislated increases, meaning more money goes into your super.
2. Super on parental leave pay
For the first time, superannuation will be paid on the government’s Parental Leave Pay. Parents will receive an extra 12 per cent of their payment as a contribution to their super fund, helping to close the retirement savings gap for women and carers.
3. Transfer balance cap increase
The transfer balance cap (the maximum you can transfer into a tax-free retirement account) will increase from $1.9 million to $2 million. This gives retirees a little more room to grow their tax-free retirement savings.
4. Proposed tax changes for large super balances
The government has proposed increasing the tax rate on earnings for super accounts with more than $3 million from 15 per cent to 30 per cent. This is due to start from 1 July 2025, but it’s not yet law.
Have you received suspicious emails or seen misleading headlines about your super? How do you stay on top of changes to your retirement savings? Share your experiences and tips in the comments below—your story could help others avoid falling for a scam.
Also read: ATO reveals major tax overhaul—simpler returns on the way
