High income earners with more than one employer (eg Company Directorships) can from 1 Jan 2020 opt out of having the 2nd or 3rd employer paying compulsory superannuation where an individual will exceed the concessional cap of $25k. This avoids a member being forced to deal with excess contributions.
For the first time in the FY 2020 year, if an individual has a superannuation balance of less than $500,000 they can carry forward the unused concessional cap amount from FY 2019 and use it in a future year up to a maximum of 5 years. This will be a useful planning tool where individuals have larger capital gains in one year or variable levels of income from one year to the next.
Found My Super
The ATO holds approximately $17.5b in lost super and they are currently match making with their rightful owner. Since 1st November 2019, the ATO has been reuniting members with their lost super by depositing the funds to their current active super account or for those over the age of 65, they are sending cheques or direct deposits. We have a few clients who have received such cheques much to their surprise.
Escalating Life Cover Premiums
For a few years running, life insurance premiums have increased dramatically. This year is no exception post the Royal Commission with an increase in percentages of claims being paid, a big jump in mental health claims and new rules reducing the number of people in Australia paying for insurance. Given these rises we are focused on checking you have only the quantum of cover you need in our progress meetings, in the meantime please call us if you have any queries.