This month we’ve been supporting the Mother’s Day Classic, a fun run/walk that raises much-needed funds for breast cancer research. And for the seventh year in a row, I also participated in the Mother’s Day Classic Corporate Challenge, raising over $20,000. For me, joining the fight against breast cancer and raising funds for the National Breast Cancer Foundation is an honour and a privilege that can have very real benefits for our members who are faced with this challenge themselves or within their families.
Our number one focus is on helping members achieve their best possible outcomes in retirement – this includes keeping you informed of changes to superannuation that might affect you and your super.
Here’s a snapshot of some recent updates from CareSuper and the superannuation industry.
Federal Budget 2021/22
The Federal Budget 2021/22 included a range of initiatives to support Australia’s post-pandemic economic recovery. Several changes to superannuation and retirement were also announced, one of the most important and welcomed proposals is the removal of the $450 monthly minimum income threshold for employer super guarantee (SG) payments. A change that will improve the retirement outcomes for low-income earners and help to bridge the gap in retirement savings between men and women.
We’ve provided an overview of some of the announcements made in the Federal Budget 2021/22 and how they might affect you and your super here.
Upcoming changes to super
There are upcoming changes to super that will come into place on 1 July 2021. These changes include:
- SG payments will increase from 9.5% to 10%, gradually increasing to 12% over the next 5 years
- The cap for before-tax contributions called concessional contributions, including employer SG and salary sacrificed contributions and those on which you’ve claimed a tax deduction is increasing to $27,500, up from $25,000
- The cap for after-tax contributions, called non-concessional contributions, is increasing to $110,000, up from $100,000
- The amount that can be transferred from an accumulation account to a pension account, known as the transfer balance cap, will be indexed up to $1.7 million for eligible members, up from $1.6 million.^
Self-managed super fund (SMSF) scams
We've recently become aware of scams targeting Australians to establish an SMSF. The Australian Securities and Investments Commission (ASIC) has issued a scam alert about this issue, which you can read here.
Online scams are often changing, but you can protect yourself by learning how to spot the common signs of a scam. We’ve shared a few tips here.
Boosting your super before the end of financial year
The end of financial year is fast approaching. If you’d like to make a personal contribution to your super for this financial year, please make sure you submit your contribution via BPAY before 25 June 2021 to ensure it's received by 30 June 2021. If you intend to make a salary sacrifice (before-tax) contribution through your employer, your employer will need to submit the payment and the remittance by 23 June 2021. You can find out more about making personal contributions to your super here.
If you’re a low-income earner and you make an eligible personal contribution to your super before the end of financial year you might be eligible to receive a $500 boost to your super through the Government’s co-contribution scheme. You can find out more here.
When making contributions to your super it’s important to keep the contribution caps in mind, because if you exceed the caps you might have to pay more tax.
Super members check you’re in the right occupational category for insurance
Your job can make a difference to how much insurance cover you have and how much it costs. At CareSuper we have three occupational categories for our standard insurance cover – General, Office and Professional. Eligible new members default to the general scale. Each category reflects the level of risk associated with different roles and occupations. If your role predominantly entails professional, managerial, administrative, clerical, secretarial or similar ‘office based’ duties that don’t involve manual or outdoor work, you may be eligible for the Office or Professional category and receive more insurance cover for the same fee or keep the same cover and pay less depending on the type of cover you have and subject to your current health. Please note, this may not apply to you if you’re covered under a Corporate insurance arrangement. You can always tailor your cover to make sure it meets your needs.
You can review your insurance cover and apply to change your occupational category in MemberOnline.
If you have questions about your super, you can contact us. Remember, we’re always here to help.
^Indexation of the general transfer balance cap, ato.gov.au, https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/transfer-balance-cap/
* Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.