Welcome to the May edition of TOWER Talk.
Providing you with current information concerning TOWER,
our products and the industry.
In this edition:
New rules for superannuants between 66 and 75 years of age
Earlier this month the Superannuation Industry (Supervision) Regulations were amended to remove, for this financial year only, the need for members aged between 66 and 75 to have been gainfully employed for 240 or more hours in the previous financial year to maintain membership of the fund. To read more, click here
Super Fast Facts
Quick facts and updates on Superannuation to keep you informed. To read more, click here.
Canberra Corner
For an easy to read update on the progress of legislation through parliament, click here.
New rules for superannuants between 66 and 75 years of age
Earlier this month the Superannuation Industry (Supervision) Regulations were amended to remove, for this financial year only, the need for members aged between 66 and 75 to have been gainfully employed for 240 or more hours in the previous financial year to maintain membership of the fund. Prior to the change, TOWER had been actively following-up members to ensure compliance with the rule, however, have now suspended all such action and will be contacting those current members who have not responded to earlier correspondence advising them that they may maintain their benefits in the fund until 1 July 2005 regardless of their employment status.
The employment criteria will apply from 1 July 2005 and we will be writing to all current members in July who are between 66 and 75 years of age requesting that they confirm that they were gainfully employed for 240 or more hours this financial year if they wish to remain a member of the fund.
You should be aware that there have been no changes to the contribution standards and, aside from SG and award type contributions, once a member reaches 65 years of age contributions may generally only be made by or in respect of the member once he/she has worked 40 or more hours in a period of not more than 30 consecutive days in the financial year in which the contribution is made. Additionally, there has been no relaxation of the rules applying to members once they reach 75, who must withdraw their benefit (or roll-it over to purchase an income stream product) unless born before 1 July 1929 and gainfully employed for 30 or more hours each week.
- The ATO and ASIC have recently released “Is self managed super right for you?”, a fact sheet suggesting four questions that people considering moving into a self managed superannuation fund should ask themselves. To view the fact sheet please click here.
- The Minister for Revenue and Assistant Treasurer, Mal Brough recently released for public comment draft regulations that will further refine the meaning of interdependency relationships. To view the draft regulations please choose from the list below:
- ASIC has recently released a Media Release titled “ASIC to keep a close eye on accountants’ advice about self managed superannuation funds”. In this media release Jeremy Cooper, Deputy Chairman of ASIC stated “ASIC is looking to take enforcement action where they give misleading advice about self-managed superannuation funds (SMSFs)”. To view the media release please click here.
- ASIC has launched the newest version of their Superannuation Calculator which enables people to compare the costs of two funds side by side. To use the Superannuation Calculator please click here.
There are many changes made to legislation that may affect you and your clients month to month. For an easy to read update on the progress of legislation through Parliament, click here.
Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.
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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848