MEDIA RELEASE: Prime Super
Friday 29 November, 2013
What now for super?
The implementation of the Stronger Super reform package and a newly elected federal government mean that change is once again in store for superannuation. Prime Super’s Victorian Regional Manager Rod Stewart highlights some key issues to be aware of.
MySuper: 1 January 2014 deadline fast approaching
Currently all employers must have a default fund for employees who do not choose a super fund when they begin their employment. Under the MySuper reforms, from 1 January 2014, employers can only offer an approved MySuper product as their default fund.
The Australian Prudential Regulation Authority (APRA) maintains a list of approved MySuper products at www.apra.gov.au/RSE/Pages/default.aspx. Obviously you can also contact your current default fund directly to ask whether they will have a MySuper product in place by the 1 January 2014 deadline.
The good news is that if Prime Super is your default fund you will automatically comply with the MySuper requirements come 1 January 2014.
Coalition government plans to delay SG increase
From 1 July 2013 the ALP federal government increased employer Superannuation Guarantee (SG) contributions from 9% to 9.25%. They also legislated that SG contributions will progressively increase each financial year until they reach 12% in 2019.
The newly elected Coalition government recently released a draft bill that includes plans to freeze this SG increase for two years. This means that the SG rate will remain at 9.25% until 30 June 2016. For the financial year starting 1 July 2016 it will rise to 9.5% and then gradually increase by half a percent each year until it reaches 12% for the financial year starting 1 July 2021. But please note that although this proposal has been announced, to date it has not as yet been passed through Parliament.
Coalition also plans to repeal the Low income Super Contribution (LISC)
The previous government was concerned that people on low incomes were penalised by the taxation of superannuation contributions. It introduced the LISC to refund the 15% tax on super contributions paid by those earning less than $37,000. In the current Government’s draft bill the LISC will be abolished and no refund paid in respect to concessional contributions made after 1 July 2013.
Again, this change although announced is not as yet law.
Further for information on this article or any super query, please contact Rod Stewart on 0428 558 158 or firstname.lastname@example.org.
Prime Super (ABN 60 562 335 823) is a not- for-profit Industry Superannuation Fund.This article contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. Prime Super is issued by Prime Super Pty Ltd (ABN 81 067 241 016, AFSL 219723). A Short-Form Product Disclosure Statement is available from the issuer by phoning 1800 675 839.