Federal Budget 2019: Super changes minor, but helpful

Retirees won’t benefit much from this Budget, but those still saving for retirement may.

Super changes minor, but somewhat helpful

The Government knows how important it is to make superannuation as lucrative a system as possible. With the projected cost of funding older Australians expected to hit $36 billion by the end of the decade, any chance of making super more effective and helping older Australians increase their own retirement savings would be seen as a boon to future budgets.

While super changes announced in this year’s Federal Budget are minor to say the least, the Government’s voluntary superannuation contribution plans will certainly help out pre-retirees and those who have finished full-time work but have not yet fully retired.

Both concessional and non-concessional voluntary superannuation contributions can now be made by those aged 65 and 66 without a requirement to meet the work test, with those aged 65 and 66 able to make up to three years of non-concessional contributions under the bring-forward rule.

People aged up to and including 74 will also be able to receive spouse contributions without having to meet the work test requirements. Currently, workers aged 65 to 74 must work a minimum of 40 hours over 30 days (during a relevant financial year) in order to make voluntary superannuation contributions.

Also, those aged 65 and over cannot access bring-forward arrangements and those aged 70 and over cannot receive spouse contributions.

Aligning the work test with the eligibility age for the Age Pension, which is scheduled to reach 67 from 1 July 2023, and increasing the age limit for spouse contributions to 74 will certainly give older Australians more options when saving for retirement.

The Government will also make permanent the current tax relief for merging superannuation funds that is due to expire on 1 July 2020 in a measure consistent with Productivity Commission recommendations to address inefficiencies, reduce costs, manage risks and increase scale, leading to improved retirement outcomes for members.

An additional $2.3 million will be given to the Australian Securities and Investments Commission for the Superannuation Complaints Tribunal. Another $100,000 will support the establishment of a Superannuation Consumer Advocate to help consumers with policy discussions and provide information to educate and assist consumers navigate the superannuation system.

What do you think of these changes? Will they benefit you?



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    3rd Apr 2019
    Did anyone listened to the ABC analysis after the budget? A few people offering were their self orientated opinion. I just shook my head and switched off. I don't know who the lady was but she went into full attack mode on the non tax paying retirees.

    We have paid tax - heaps. Very time we buy anything it is taxed. Self funded retirees receive no special benefits. The money in those super funds was hard earned.

    All of a sudden it seems like its a cache we should just give away. - to them.

    I am watching the spiraling cost of everything external to day to day living and prices are surreal. That cache we, supposed rich, greedy, baby boomers have accumulated has disintegrated in just 4 years as the housing boom decimated the value of the earned $.

    If you were lucky enough to have invested in the housing market pre boom then you are as 'safe as houses'. However if you chose the other investment path - watch out.
    Old Geezer
    3rd Apr 2019
    SFRs are a dying breed as they just get fleeced for doing the right thing. You'd have to be a mug to be one in the future. Also super is dead and once you retire there is no benefit keeping it.
    3rd Apr 2019
    Rosret it is pointless looking to the ABC for a balanced analysis on any issues regarding Labor/Liberal .Maybe try watching the money channel for a more balanced view point
    3rd Apr 2019
    Yes Rosret and she missed the 60% of other people who don't pay tax or get more than they pay back. So much dis information.

    Heading for cover is possibly the best bet. We will need a lot for aged care later on and these young people can't possibly see that coming like we can.

    Superannuation has been well and truly made unviable. It's just not a safe option once retired.
    3rd Apr 2019
    These SUPER changes may be minor but the ALPs changes force the SGC to be higher which will lead to a reduction in wages/salaries. So LNP changes are voluntary whereas ALP changes are forced.
    3rd Apr 2019
    No surprise the ABC attacks the self funded retirees at every opportunity .. they are the tax funded mouth piece of labor and the Greens and also attack Abbott and conservatives for years . Just wait when many SMSF lose 30 % of their income from Labor's retirement tax .
    3rd Apr 2019
    Super is good x those who have enough super in order not to depend on a govt pension n on centrelink.
    Those with a small super n who will need a govt pension are adversely affected by Hockey's rule to take $3 × every $1k they may have over the asset threshold and, consequently are 'punished' x having a little money in their super as this money increases their assets n hence they will receive but only a part pension, if any. This is an oxy-moron. Have a little super and lose money!!!
    Does this make any sense????
    3rd Apr 2019
    You will lose a great deal more under Mr Shorten.
    3rd Apr 2019
    No it makes no sense.

    The deeming rule changes were badly done. Another nail in the coffin labelled Surerannuation Savings.
    3rd Apr 2019
    I agree Blinky, the policy is actually a disincentive to save for part pensioners because of the taper rate. It only benefits the fully self funded
    3rd Apr 2019
    Don't see how it benefits the self-funded. Hockey's attack not only forced part-pensioners to be self-funded - despite the fact that many could not generate adequate income - but has put them squarely in Bill Shorten's firing line to lose many thousands more. Two hits on people who were far from wealthy! Between those two hits, some will lose 50% of their pre 2017 income. Yet if they had saved half as much, they would be enjoying a very nice income and not touching any savings at all. It's a ridiculous system! Why bother to save extra for retirement only to have it all taken away to gift to people who didn't?
    3rd Apr 2019
    You mean there WAS actually something in the budget for older Australians then!
    5th Apr 2019
    Not for us KSS. Independent savers never get anything much.
    3rd Apr 2019
    You'd be insane to put more money, especially after tax money, into superannuation. It's just not safe.
    Remember Howard and the million dollars in jus before the market correction wiped half of it away.
    3rd Apr 2019
    is a Self funded retiree changing from an SMSF to an Industry Super Fund disadvantaged in any way ??
    Old Geezer
    3rd Apr 2019
    Yes they have lost control of their money. The unions now control it.
    4th Apr 2019
    Actually Old Geezer, you are a liar !!
    Karl Marx
    4th Apr 2019
    I am better off now that I diversified my portfolio from shares & FC's & put most into an Industry Super Fund. It also gives me control on how & where my monies are inverted. It's an income fund so a minimum of 5% drawdown is required & if I need say $5k extra for a holiday or whatever I can do it online so my money is far more accessible. So far this year it's doing very well.
    Industry funds have year in year out outperformed retail funds.
    Unions don't control Industry funds. Industry funds have union representation & work for the members unlike Retail funds that put profits & shareholders before members.
    3rd Apr 2019
    Self funded retirees are a dying race could be starvation.
    Old Geezer
    3rd Apr 2019
    Why bother being self funded when they just take, take take.
    4th Apr 2019
    Old Geezer, I have always thought trying to become self funded in old age is rather stupid. Knew that when superannuation came in; was in company super in the 70s and when I got retrenched I got the lot out and paid off all my outstanding debts including the mortgage. Once you own your home the age pension plus the allowable extras should be sufficient. When the house is finally included in the asset test I shall sell it and spend the dough and then claim rent assistance. This government (both sides) just does not like someone being better off than the other person. So one takes the easiest way with the least effort. If you are in your 50s think hard about working all the way to 67. People with sons and daughters might think differently.
    3rd Apr 2019
    I love the bit about being able to receive spouse contributions until you're 74. Just need to acquire a complicit spouse. Any offers? :)
    3rd Apr 2019
    want one to give or to receive ??
    3rd Apr 2019
    Its a tax deduction for the higher earner. Its OK really as it all goes in the one kitty should one or the other want to part company.
    I guess its all about trust. :-D
    3rd Apr 2019
    No, I did NOT listen to the ABC on budget night & I wholeheartedly agree with Rosret’s comments. Us baby boomers are being castigated from all fronts including that Marxist leaning ABC. The Coalition has been attacked by the obstructionist Senate & crossbench MP’s & through careful decision making has turned Labor’s massive debt into something more maneageable. As for Shorten promising a budget surplus I remember Swan (the world’s greatest treasurer) promising that year after year & we all know that outcome-debt, debt & more debt. Anyone contemplating voting for any party except the Coalition needs to scrutinise Labor’s ‘policies’ & they do not stack up.
    3rd Apr 2019
    I agree. Labor's policies are too costly on the individual at a time when we really do need a fairly regimented budget.
    18th Apr 2019
    SFR’s rip off the system.

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