Federal Budget 2018: Superannuation
Federal Budget 2018 Initiatives: Superannuation
- 3 Year audit cycle for some SMSF
- SMSF Membership increasing to a maximum of 6
- Super exit fees banned
- ‘Opt-in’ for Insurance in Super
3 Year Audit cycle for some SMSF
Some SMSFs will be allowed to move from an annual to a three-yearly audit cycle if they have:
- Three consecutive years of clear audit reports; and
- Lodged the fund’s annual returns in a timely manner
SMSF Membership increasing to a maximum of six
The SIS Act will be updated to enable the number of fund members in new and existing Self-Managed Superannuation Funds (SMSFs) to increase from a maximum of four to six.
Super exit fees banned
Effective 1 July 2019, A ban will be placed on all exit fees on superannuation account in addition to a 3% annual cap on passive fees charged by superannuation funds on accounts with balanced below $6,000.
“Opt In” for insurance in superannuation
Effective 1 July 2019
Insurance in superannuation will change from a default framework to an ‘Opt In’ basis for those:
- With balances less than $6,000
- Under the age of 25 years
- Whose accounts have not received a contribution in 13 months
The proposal has been designed to protect the retirement savings of young Australians. Impacted members will need to decide whether they will opt-in to the existing cover or allow it to switch-off.
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