Superannuation News
Superannuation Guarantee Set To Increase
08/11/2011
The Australian Federal Government has introduced a Bill into Parliament to increase the Superannuation Guarantee (SG) rate applied to an employee's ordinary time earnings from 9% to 12%.
If passed, the 'Superannuation Guarantee (Administration) Amendment Bill 2011' will gradually increase the SG rate from 9% to 12% between 2013-14 and 2019-20.
Simplified tax deductions for TPD insurance inside Superannuation
14/07/2011
From 1 July 2011 changes have been made that will affect how superannuation funds claim tax deductions for TPD insurance.
The new process for claiming tax deductions will allow funds to automatically claim TPD insurance using pre-set ranges based on definitions.
Superannuation fund life insurance proceeds in dispute
08/07/2011
Millions of dollars in life insurance proceeds have been given away as a result of superannuation fund trustees ignoring the wishes of deceased policy holders.
As reported by The Australian on 2 July 2011, written instructions in wills and binding beneficiary death nominations are being contested by people who claim they are entitled to the death benefits of loved ones held inside super.
Better Off With Superannuation Advice
16/05/2011
The Financial Services Council has released independent research showing people who receive financial advice on superannuation will be almost $100,000 better off at retirement simply through learning better savings behaviour.
The Council's research shows a 30-year-old would save an additional $91,000, a 45-year-old would save an additional $80,000 and a 60-year-old would save $29,000 more than those without a financial adviser.
Superannuation savings pool tops $1 trillion
25/01/2011
The superannuation industry in Australia is recovering well as reported by APRA (Australian Prudential Regulation Authority), with Australians pouring more than $100 billion into superannuation funds in 2009/10. As a result the nation's superannuation savings pool has increased to $1.23 trillion with investors enjoying the first positive returns in three years.
Floods, financial difficulty & early access to superannuation
21/01/2011
Australians affected by recent floods in Queensland, Northern New South Wales and parts of Victoria, may seek to gain early access to their superannuation. Today we discuss how the relevant condition of release operates, eligibility, and any taxation consequences.
There are two relevant superannuation early release conditions, severe financial hardship and compassionate grounds - each with different eligibility criteria and other rules. In addition, a person who has reached age 55 but not yet retired may be eligible to use their superannuation benefits to start a transition to retirement pension and take a maximum income payment of 10% of the account balance in each financial year.
First State Superannuation to merge with Health Superannuation
13/12/2010
Superannuation funds First State Superannuation and Health Superannuation today announced an in-principle intention to merge.
Dr Thomas Parry, AM, Chair of First State Super, and Mr Garry Richardson, Chair of Health Super, confirmed a Heads of Agreement has been signed detailing the planned merger. Both superannuation funds have agreed to work towards a target merger date of 30 June 2011, subject to a due diligence process.
Inactive superannuation funds to be taken by Government
16/11/2010
Over $13 billion in inactive or lost superannuation fund accounts may be taken by the federal government unless claimed by owners.
Laws were introduced last year so that in October 2010 the government will begin transferring inactive superannuation fund accounts into consolidated revenue. It is estimated that the government will gain around $10 billion over the next five years.
New superannuation fund identity fraud scheme
27/05/2010
A recent police investigation has uncovered a multi-million dollar identity fraud scheme.
A crime syndicate has been emptying out the accounts of superannuation fund members by initiating fund rollovers to fake self-managed superannuation funds (SMSFs).
People have been advised to check their superannuation fund benefit statements twice a year, to take extra care to protect their PINs and passwords, and to be careful who they give their personal information to.
TOWER to amalgamate its superannuation funds
10/05/2010
TOWER Australia today announced it will amalgamate eight of their superannuation funds into one superannuation fund.
This move is a part of TOWER Australia's ongoing simplification initiatives.
The newly amalgamated superannuation fund will be called 'TOWER Master Fund'.
CONNECT and Cbus Industry Superannuation Funds in Merger Discussions
19/4/2010
Industry superannuation funds Cbus and CONNECT today announced a landmark in-principle agreement to merge.
Superannuation Fund Chairmen Steve Bracks of Cbus and Mac Russell of CONNECT confirmed that a Heads of Agreement had been signed detailing the planned merger, and agreed to work towards a target merger date of 1 October 2010, subject to a due diligence process.
Superannuation losses due to extended maternity leave
19/04/2010
In a study conducted by Rice Warner Actuaries, women on average lose $45,200 in superannuation savings when taking five years off to raise children, or 26 per cent, less than an equivalent woman who stayed in the workforce until retirement.
These figures clearly show that women who take career breaks and choose to raise a family are disadvantaged when it comes to saving for their retirement. Women already face lower living standards in retirement because Australia's superannuation system is designed around the paid workforce.
How did your superannuation fare in 2009?
14/01/2010
A news article by the Herald Sun on 2 January 2010 discusses
The article states that people who were passive and stayed in the 'default balanced investment option' did well and clawed back a lot of the losses of 2008. Over the past seven years to the end of November the median growth option returned earnings in line with the more aggressive high growth option and ahead of the conservative option.
So for the actively engaged, the news is not so good. This mainly includes people who obsessed about their superannuation and changed out of growth and balanced investment options in 2008 and early 2009.