The following update on insurance in super has been provided by Child Care Super, ACA's national superannuation partner. We initially ran this blog post late last year; we are running it again as the legislative changes it refers to come into effect next month. You can read about this partnership here.
The Government has made changes to superannuation which could have a major impact on people under 25.
The changes, which come into effect on 1 April 2020, aim to ensure that Australians' superannuation balances are not unnecessarily eroded by insurance premiums.
The new reforms mean that superannuation providers can only provide default death and total and permanent disablement (TPD) insurance on an 'opt-in' basis to members who are under 25 and begin to hold a new superannuation account from 1 April 2020; and members whose superannuation balance has not been $6,000 or more from 1 November 2019.
This means that super providers will be required to ‘turn off’ insurance cover on 1 April 2020 for members whose account balances have not been $6,000 or more from 1 November 2019 unless the member “opts in”.
Part 2 In Child Care Super’s series on how to make additional contributions into super
Adding money into your superannuation is a great investment in your future
Putting extra money into super today, on top of your employer’s super contributions, can help ensure you’ll have enough to enjoy life when you stop working.
The experts say you’ll need around $500,000*. That may sound like a lot, but you don’t have to contribute large amounts of money to make a difference. Small regular amounts can add up to thousands of extra dollars over time.
Think it’s hard to grow your super? It isn’t.
Putting extra money into your superannuation is a great investment in your future.
If you want to live comfortably when you retire, adding to your employer's super contributions can help. And you don’t have to contribute large amounts of money to make a difference. Small regular amounts can add up to thousands of extra dollars over time. And the earlier you start, the better, thanks to the growth provided by long-term investment returns.
There are lots of ways you can add to your super
You can add to your super via pre-tax salary sacrifice contributions, after tax personal contributions, spouse contributions as well as contribution splitting.
In this blog post we’ll explain what an after-tax contribution is and how you can make them.
As you may have read in recent media articles, Australia is currently dealing with an EpiPen shortage.
The shortage has been caused by overseas manufacturing issues, and it is predicted that the supply problem won't be resolved until at least the end of January.
Early learning service providers are being advised to: