Explained … the changes to super rules from 1 July

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The past three Federal Budgets have flagged changes to superannuation rules that may affect you from 1 July 2018:

  • the 2017 Budget introduced the ‘downsizer contribution’, which allows individuals aged 65 years and over to make non-concessional contributions of up to $300,000 (or $600,000 for couples) to their super from the proceeds of selling their main residences. This applies only if the home was owned for 10 years and it is not sold before 1 July
  • the Superannuation Complaints Tribunal will cease to exist on 30 June and will be replaced with the new Australian Financial Complaints Authority (AFCA). The AFCA will be an industry-funded complaints body covering all financial and superannuation disputes
  • individuals whose annual income exceeds $263,157 and have multiple employers will be able to nominate that wages from certain employers are not subject to the superannuation guarantee.  This will allow those individuals to avoid unintentionally breaching the $25,000 annual concessional cap
  • tightening rules for tax deductions on personal contributions to ensure super fund members who receive a tax deduction on personal super contributions are completing ‘Notice of Intent’ forms.
  • from 1 July, the Government will help people ‘catch up’ their superannuation contributions by allowing individuals with a total superannuation balance of less than $500,000 to carry forward and contribute for up to five years any unused concessional cap amounts

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Written by Olga Galacho

16 Comments

Total Comments: 16
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    The way the government is fiddling with super, most of us are stupid to even consider having any and certainly would be fools to put any more in. I know many who are closing their funds down and just investing privately.

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      yes OGR, I closed mine and sleep easier knowing I am in control of my own investments. Win loose or draw it’s based on my decisions not at the whim of our current crop of self serving pollies who prove time and time again that they are as helpful to the average Aussie as barbed wire bum wipes.

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      I think you are right !

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    Most people have no idea of what , how where and when their super actually benefits them or just goes down the toilet?
    Most have no idea of how it will affect them, nor do they understand exactly what all these changes to super mean.
    Why does a government need to fiddle with superannuation rules and laws and constantly, it seems to me the only benefits are for the government to save revenue somehow, if it was not for that then why keep moving the goal posts.
    We know why , the government..”s” all of them are the damned same.

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    I’m taking my super in December when I reach my preservation age. I have investment plans. I don’t trust future governments to allow me to take my balance in the future. I believe they will cut us off and force us onto pensions.

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      PS I’ll lose my super-based insurance. However, I will pre-pay a funeral and not worry about the rest. My investment plan includes considering health costs. I just don’t trust the pollies. If I don’t pull it out, I could be destitute for the rest of my life. Taking it will ensure I can live in some comfort.

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      Hi Anne. Dont bother with ‘pre-pay a funeral “. Its waste of money !

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      Johnp: Why is a pre-pay a waste? I agree that funeral insurance is a potential extremely large waste. However, if I pre-pay a coffin, service, cremation, what’s the problem?

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      Hi Anne. what sort of dollar amount are we talking about ? By that I mean how much were you thinking to pay for a pre-pay funeral ?

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    It is probably fair to state that retired people are really fed up with the twiddling going on for retirees on fixed incomes. Some folks are very wealthy and while it might not be pleasant, rule changes are inconveniences. There are others who by virtue of their current arrangements will experience meaningful loses that may cause true hardship. We look around and see people unable to find a place to life that they can pay for. I think we have been betrayed and mistreated because of the superannuation scheme and all the folks who want to dip their spoons in the big big big honeypot. If the pot is big, chances are we will be needing it. If it is not then chances are life will get very mean and hard. I hope this lot lose government because they are not properly leading the country and they are not addressing the real problems Australia faces. Innovation and jobs, with no real plan behind the slogan. They are driving us like lemmings off the cliff.

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      Linda,
      It doesn’t matter which government are in power. They all will promise the earth before hand, but as soon as they get in they start feathering their own beds [and their friends].

      As long as they are all right, stuff the rest of us.

      Voting for non main parties is the only way to show we are fed up with always being the scrape-goat for their mismanagement.

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    “tightening rules for tax deductions on personal contributions to ensure super fund members who receive a tax deduction on personal super contributions are completing ‘Notice of Intent’ forms.”
    How about making another option for us poor old self employed people to put our super contribution in . It’s a nightmare, as is ????

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    Super works only if you have $700000 or more as that would give u a reasonable income n u wouldnt have to deal w centrelink, which can be humiliating for some. If you have less than that two things will happen; (a) you will not have enough super to live on. (B) you will need a part pension, and thid is where centrelink will take $3 x every $1k you may have over the asset threshold i.e. you lose money becausr you have a small super. In sum, and as usual, it is the middle class Aussies who are punished NEITHER THE LIBS NOR THE ALP want yo change this while the solution is so simple: EXEMPT THE FIRST $100K FROM THE ASSET TEST, OR INCREASE THE ASSET TEST. BUT ARE ANY POLLIES LISTENING? I DO NOT THINK SO!!!

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    True Only Genuine. Not only do they fiddle with super but with the pension system as a whole. BUT their own pension system i.e. only for pollies!!! Is untouchable, specisl and regal.They do not need to worry about asset or income threshold or their house(s) being ibcluded in the asset test. In fact, they do not even need to put money into their supers as their FAT pensions are guaranteed x life. The ALP, for example, say they stand x Aussie workers, this does not include ex-workers, so retirees are not included. In sum, Aussie pensioners are stuffed!!!

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    super is a savings scheme


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