The Entrepreneurs

Protecting your Super Changes (Latest Update)

  • Written by Chloe Scott

Superannuation may not be a sparkling dinner conversation, but that should be. Many of us ignore our superannuation, but as we have come to the end of the financial year now is the chance to take control.

We’ve had some reforms to super, including something about insurance. The superannuation changes that have been announced in the 2018-2019 Budget have come into effect last July. These reforms were designed to insist on Australian superannuation savings from being eroded by fees and insurance premiums and to reduce the unintended consequences of multiple accounts.

A few things are happening. The first is that as of July 1, if you have an inactive superannuation account, which means you haven’t contributed in 16 months, automatically the insurance premiums and your access to that insurance account will stop.

What’s happening is that your super funds are contacting their members, telling them to let them know. So if they need that insurance and want that insurance, they need to do something. They need to either contact their superannuation fund, or they need to contribute to making that fund active.

Exit Fees

As of July 1, there’d be no cost to exit your super funds. So people don’t need to be concerned about those consequences, but they absolutely do need to think about it. I talked with someone about superannuation over dinner, and they said they hadn’t touched their superannuation for the last couple of years.

So they went away to look at what their insurance needs were if they need to do something about it. So it is a really relevant conversation at the moment and really important now with your super.

What about inactive accounts?

Some people who might have multiple jobs in the past and have moved from one to the other maybe had a super account in each different one – what’s happening in inactive accounts now?

Inactive accounts with a balance of less than $6,000 – or low balance accounts – will automatically, as of July 1, go to the ATO. So they aren’t lost, but they will go to the ATO – to the lost super – or unclaimed super part of the ATO, and they will hold it there for you to claim of consolidating.

The issue with that is if you’re not earning anything on your investment in that time, it is essential to look at how many accounts you have and if it’s not your intention to have more than one account, you should consolidate.

You’ll save a few – like $500 a year maybe – and that’s savings that could accumulate and make a big difference to you in retirement.

What is the simple rule of thumb for superannuation?

The rule of thumb for this financial year to get your superannuation in order is that over 15 million people in Australia have super funds, which means that they are all investors.

So each member is an investor, and you should engage. It’s your money. Someone has taken money into your pay, and they’re investing it into something that is for you. So it’s one of the significant shifts for beginners to think about it as their money.

But the first thing to do really is to log on to the ATO and check to see if you have multiple accounts. Or if you don’t want to do it yourself, you can opt for the services of Australian Super Funder, and we will do all the work for you.

All you need to do is fill out the form on this page with your essential information and let us handle the rest. This should be the easier the option, and I know a lot of people who have done it.

The second thing you need to do is to consolidate your super funds. Look closely at your account to see if it meets your needs – what insurance do you have, whether or not you are you happy with the fees that are attached that suits you, etc.

People also need to ask what kind of investments their super fund is making. Are they investing in tobacco or any other product? You need to know whether it is essential to you to be part of a fund that does or doesn’t invest in something.

Final Words

There is a lot of conversations surrounding super and finding, and how to find lost superannuation online consolidating super is indeed among them. Other changes to super have been made, and it would be within your best interest to check them out and see how they can affect your super.

So far, as we’ve mentioned in the beginning, all these changes were designed to help protect your super. But ultimately, you’d be the one responsible for your super and how it can grow for your future during retirement.

It’s worth doing all the things you need to do - find lost superannuation money, consolidate your super, etc. for a more comfortable retirement.


.

Read more to improve your trading perfor…

If you are not prepared with a proper trading plan, the executions will not return profits. Instead, you will experience big losses from the trades. As Forex trading business deals...

MixMarvel successfully builds up the com…

Following a successful series of roadshows in Melbourne, Perth, and Sydney, MixMarvel has paved the way for the development of blockchain-based games in Australia. During the roadshows, MixMarvel not only...

e-Commerce is Growing in Australia Thank…

Australia and other regions nearby have been experiencing a major shift in online business. Some economists are calling this a major boom for e-commerce, and it is all thanks to...

Top 5 Ways To Make Your Website Content …

When you want to make your website content as relevant as possible, you must ensure that you have taken several steps to improve the way you write, change the keywords...

4 ways to market your business online

When small businesses get started, many rely solely on traditional forms of advertising, but the online marketplace provides a better and easier to highlight your brand. Once considered a new...

The Trolley Tactician - How Supermarkets…

Supermarkets are a tactical minefield of strategic elements designed to make you spend more whilst you are there. Getting people in the door is only part of the marketing battle...

3 Ways Your Business Can Use Drones

Australia has a wealth of businesses, both small and big, who help to contribute to a booming economy. There are thousands of businesses across the country, all in different industries...

The Top Five Myths About Being an Entrep…

Do you remember the last time you heard someone refer to themselves as an ‘entrepreneur’? It was most likely a contestant on a reality show, thinking because they have three phones...

Protecting your Super Changes (Latest Up…

Superannuation may not be a sparkling dinner conversation, but that should be. Many of us ignore our superannuation, but as we have come to the end of the financial year...

An Introduction to Forex Trading

Forex trading has become more popular in recent years. And the internet has been a major driver of its growth. The foreign exchange market, known as the Forex market for short...

5 must-try foods from around the globe

Indulging in new culinary experiences is a luxury, namely because it can be an expensive endeavour. However, if you are someone who likes to try new and wacky meals, then...

SEO to Market Your Business

Today, operating a good website is a basic part of establishing and growing your business. Once your site is up and running, you need to incorporate all the best techniques...

Choosing Flat Top Tipper Trailers

A tipper trailer can be a great asset when you need to transport bulk goods or remove rubble etc at regular intervals. Compared to standard tippers, the flat top tipper...

The Weirdest Guinness World Records

We have all dreamed of making history at one point or another. Outliving the mortal coil and being remembered for something truly amazing has been the desire of many. The...

Bill Shock - 4 Steps To Take If You Get …

Paper usually can’t punch you in the stomach, but an unexpected bill can. These powerful blows can manifest in the form of medical bills, car repairs, a broken phone, or...

Understanding Security Token Offerings (…

The market appetite for compliant crypto currencies with very high quality is only slated to grow further and that is great news for the STO model that can significantly impact...

Effective Wi-Fi Solutions Can Enhance Cu…

Connected world is the buzz word today and that has made Wi-Fi more a necessity than a luxury. For big as well as small businesses, including business individuals Wi-Fi is...

Looking for a Change? Top Freelance Jobs…

Get up at 6:00 am. Arrive at the office by 8:30 and spend at least nine hours behind your desk. Go home and watch some TV before falling asleep, rinse...

4 kinds of work breaks you need to intro…

Did you know that 18% of Australians eat their lunch at their desk or workstation? Despite research showing that employees are more productive at work when they take breaks, many...

6 essential things your small business n…

As a small business owner, there is a lot that you need to think about, from how to maximise your small office space to how your business can cut costs...

The Rise of Micro-Influencers

The dominance of influence marketing has taken the world of online marketing by storm. In a consumer market that is increasingly sceptical of brands, companies are outsourcing their promotion to...

Taking Advantage of Family Lawyers in Sy…

Family lawyers in Sydney offering a free consultation is a scenario that citizens should take advantage of. There are so many costs that are incorporated in a legal battle, so the...

How to get the most out of your internsh…

A lot of young students and those fresh out of university think that once they have an internship in the bag, it’s all smooth sailing. However, if you have been...

Why working with a professional content …

There is whole new world out there for those who have just started to dip their toes into the subject of search engine optimisation. There are courses that people can...