New rules for 2020 Jan 1, 2020
A very happy New Year to our members and their families!
2020 has arrived, and with it some new financial rules to keep in mind. We’ve summarised some of the main changes that you should be aware of.
SG changes in place from 1 January 2020:
- Super Guarantee (SG) contributions are now required to be paid on an employee’s gross income, regardless of whether any salary sacrifice arrangements are in place. This means that an individual’s salary sacrifice contributions can no longer be used to reduce SG contributions.
- You can read more about this change here.
Insurance legislation in place from 1 April 2020:
- Anyone under 25 years of age will no longer receive default insurance in super when they open a new super product unless they opt in.
- Members whose account balances have not been above $6,000 since 1 November will lose any default insurance attached to their account unless they opt to keep it.
- Read more about these insurance changes here.
The following rules are due to come into effect on 1 July 2020, but are currently subject to the passage of legislation:
- Those aged 65 and 66 could have more flexibility when it comes to boosting their super. This includes more options around making contributions, including paying larger amounts into super in a financial year to “catch up” ahead of retirement. You can find out more about this change here.
- The age limit for spouse contributions could be increased to 74 (spouse contributions are currently limited to those under 70). You can find out more about spouse contributions here.
If you think 2020 is your year for retirement, please get in touch with Intrust360°. Our financial advisers can help you plan a retirement strategy and explain any additional rules you may need to know about. You can give them a call on 1300 001 360 or book an appointment online.
If you’d like any further information about any of these changes, or want to ensure you have the right insurance cover in 2020, call us on 132 367. We are at your service.