eKourier Jan 2020

FINANCE

SUPER AND WHAT’S IN IT FOR ME Superannuation – money saved during your working life to support your financial needs in retirement. There’s so much talk about Superannuation, what can we do to have more Super in retirement?

• If downsizing and selling the family home $300k can be added to the Super balance tax free. There is no limit on the Super balance for this option. • Any Fund less than $6k with no activity for six months will be passed on to the Government who will try and contact the person. • Starting from 1 July, 2019 the maximum amount that can be put into Super at the 15% tax threshold can be utilised from the prior five years. This is an excellent way to boost Super, especially as employees approach retirement. An example is at the end of June, 2021 (two years after the launch) an employee who has paid $15k into Super for the last two years can add an additional $20k to top up to the annual limit of $25k. Employees with a balance greater than $500k are not entitled to this benefit. • Any employee earning greater than $250k will pay 30% Super on the excess. Kennards are not able to pass on any advice, all we can do is encourage you to review your Super every year (at a minimum) and keep up to date with legislation changes. Here’s to enjoying retirement by travel- ling around Australia, trekking in Nepal, seeing the animals migrating across the Serengeti or whatever you plan to do… Anthony Rous Chief Financial Officer WORK WITH YOUR SUPER FUND AT LEAST FIVE YEARS BEFORE RETIRE- MENT TO UNDERSTAND WHAT OPTIONS ARE AVAILABLE

• Consolidate where we have more than one Super Fund as this will reduce paying excessive fees. It is easy to identify if you have additional Super – all Funds offer this function- ality and it is easy to consolidate. • If you do have more than one Fund, Insurance and Income Protection will only be paid from one fund, the other payments are wasted costs. • Review Super on an annual basis and decide whether any adjustments are needed, this could be increasing what you put in, reduce Life or TPD Insurance. • Compare your Fund to other Funds over the last five or ten years. Should you move to a new Fund? Moving is easy and fees are minimal. • Compare your fees to other Funds. $5 less fees per month over 30 years would add $4k to your end balance assuming a 5% annual return. • Keep up to date with Super legisla- tion changes and see how they impact you. • Make sure you are classified as the correct employee status. All • Put additional money into Super when you can afford it.

Kennards employees are Office/ Management employees. Many Funds default employees to high risk work categories (like mining or construction) until the employee changes it. This will mean higher Insurance and TPD fees. • See professional advisers from your Super Fund to see if there is anything that can be done better. All Funds offer this service and normally it is free of charge for the initial review. • Ensure you have a Beneficiary as it can cause significant issues if not clear. Ideally sign the standard form every three years to confirm the Beneficiary. • Ensure details on your MY GOV are up to date so you can be contacted. • Work with your Super Fund at least five years before retirement to understand what options are available and what you can do to maximise your balance and contributions in the most tax effective way.

Several recent Superannuation changes have come into effect:

• A First Home Owners Scheme can be accessed through Super, limited to $30k per person.

10 Kennards Kourier Jan 2020