2016/17 Federal Budget
A number of key superannuation changes were announced in the Federal Budget, making the Budget one of the most significant for the superannuation industry in almost a decade. Below is a list of the key changes, but it is important to remember these proposed changes are not yet legislated and until such time as they are formally approved by Parliament they remain as Federal government proposals only.
- Low income tax offset retained
- Reduced $25,000 concessional contribution cap for all individuals
- New lifetime non-concessional contribution cap of $500,000
- New $1.6 million cap for transfers to pension accounts
- New catch up measure for concessional contributions for people with super balances of $500,000 or less
- 30% concessional contribution tax for those earning over $250,000 per year
- Extension of eligibility for those entitled to claim a tax deduction for personal contributions
- Transition to Retirement (TTR) - tax exempt status of income from TTR pensions removed
- Extension of eligibility rules for claiming spouse tax offset.
If you would like more information on any of these proposed changes please contact us.
Lump sum payment arrangements
If you are able to make partial withdrawals from your superannuation account (usually account based pensioners and retained benefit members only) you need to submit the appropriate completed withdrawal form to the Superannuation Office together with the appropriate proof of identity documentation.
All lump sum payments from the Fund are processed on Tuesday of each week. To meet this payment processing deadline for Tuesday your completed withdrawal documentation must be received at the Superannuation Office on or before close of business on Monday of each week. If a completed withdrawal form is received by the Superannuation Office on a Tuesday it will not be processed until the following week.
Member Investment Choice changes with effect from 1 January 2016
The Share member investment choice option for accumulation account members has now closed. The option previously known as 'Capital Stable' has now been renamed as the 'Moderate' investment option. Two new investment options have been introduced, the 'International Share' option and the 'Fixed Interest' option. Please see the Significant Event Notice contained in the October 2015 newsletter under Publications/Policies and Procedures on this website for more information.
Insurance changes and changes to process for death benefits with effect from 1 July 2015
Please see the Significant Event Notice in the May 2015 newsletter under Publications/Policies and Procedures on this website for more information.
Advisers who are seeking information from the Fund on behalf of a FES Super member must provide the Superannuation Board with a valid adviser authority together with certified proof of identity documentation for the member. These third party authorities will be valid for a maximum period of 12 months from the date of receipt, and may be cancelled earlier by the member by way of written notice to the Superannuation Board.
This rule applies to all third party authorities including the situation where a member wishes their spouse or partner to obtain information on their behalf, and is intended to protect the member's personal details.
If the adviser authority is no longer valid (i.e. it is more than 12 months from the date of its receipt) the Superannuation Board will require a written update to be made by the adviser or member before disclosing any details to the third party.
To help you maximise your superannuation we have provided you with a direct link to the Super Guru website that is maintained by the Association of Superannuation Funds of Australia Ltd. To access the Super Guru website click on the words "Keep your Super unified" above.
Rolling over your superannuation accounts from other funds into FES Super will make it easier for you to manage your superannuation and reduce the overall administration fees you have to pay for your super.