Superannuation changes - Federal Budget 2017/18
Significant changes to super started on July 1st 2017, these changes are shown here.
Proposed changes to superannuation for 2017/18 were announced in the Federal budget on 9th May 2017. Please note that some of the changes proposed in the budget are yet to be legislated. The proposed changes announced include:
On September 14th 2017 the Federal Government introduced a bill that will seek to close a legal loophole that allows employers to shortchange employees who make extra salary sacrifice super contributions.
Closing this loophole is a welcome step that shows progress is being made to tackle widespread Super Guarantee non-compliance, but a more comprehensive approach is necessary given the salary sacrifice changes will only help one in ten of those affected by unpaid superannuation.
Allowing first home buyers to build a deposit inside super
The government proposed first home buyers to build a deposit inside superannuation by allowing voluntary contributions of up to $15,000 per year and $30,000 in total to their super account. These contributions will attract concessional tax treatment under the First Home Super Saver Scheme.
Allowing older Australians to contribute downsizing proceeds into superannuation
From 1 July 2018, individuals aged 65 and over will be able to make a non‑concessional contribution of up to $300,000 in proceeds from the sale of a principal residence, held for at least 10 years, into their superannuation. These new contributions will be in addition to any other voluntary contributions that people are able to make under the existing contribution rules and concessional and non-concessional caps.
Merging of the Superannuation Complaints Tribunal and other financial complaint services into a single complaints Authority
The government has proposed merging of the Superannuation Complaints Tribunal with the Financial Ombudsman Service and the Credit and Investment Ombudsman into a single Financial Complaints Authority. The new body will deal with all financial disputes, including superannuation, and provide binding dispute resolution, and will be funded by industry.
Super fund governance
On September 14th 2017 the Federal Government introduced a bill to make changes to the requirements of super fund board members. This includes mandating one-third independent directors on boards, an independent chair and would require funds to explain why they do not have a majority of independent directors on their boards.
Industry SuperFunds equal representative model of employer and member representatives on boards has been a proven success delivering strong returns to members. These proposed legislative changes will seek to dismantle this successful model. Industry SuperFunds oppose this change.
Choice of fund
On September 14th 2017 the Federal Government introduced a bill that would extend choice of fund arrangements to those who currently choose their superfund through collective bargaining in EBAs.