A shake up on tax brackets was the biggest item announced in the 2018/19 Federal Budget that will affect personal finances. However there were also a number of proposed changes to super.

While the measures announced are just proposals and not yet law, they could potentially affect a number of TelstraSuper members – particularly young members just beginning to grow their super savings; those with small balances; and those currently in retirement.

The proposals contain number of measures aimed at protecting members’ accounts. These include giving the Australian Tax Office more power to actively reunite Australians with their lost super; and changes to the fees that super funds can charge.

There’s also significant changes to insurance through super and who will be automatically provided with cover. For retirees, the Budget contained measures that create more options for retirement planning.

These proposed changes follow on from a number of measures that were announced in the last two Federal Budgets. These include:

• The First Home Super Savers Scheme which allows first home buyers to use their super account to save for a house deposit.
• New downsizing measures that will allow Australians over the age of 65 to sell their principal home and contribute some of the proceeds into super.

And

• A new carry forward rule that allows people with less than $500,000 in super to “carry forward” unused amounts of their pre-tax contributions cap.

I encourage you to attend our upcoming Federal Budget Seminars that will share details on all the new measures, as well how they may apply to you and your financial future. More information is also available on the TelstraSuper website or you can book a time to speak to one of our friendly team members.

Finally, you can also expect to see changes from us here at TelstraSuper. As a profit-to-members fund, we’re working hard to deliver the best outcome for you – our members. We’re continuing to improve our Fund, including making ongoing improvements to our digital services, and will be focussing on our Fund’s features for both younger members and retired members.

This builds on our already solid foundation of competitive investment returns, engaging member education programs, strong retirement capabilities and our strong financial planning services.

I look forward to sharing further updates with you in the coming months.