In a bid to protect the super savings of Australians by weeding out underperforming super funds, the government is currently attempting to legislate requirements which will involve APRA conducting annual performance reviews for certain superannuation products. It is just one of the measures aimed at improving Australia’s superannuation system which manages around $3 trillion in retirement savings.
It is estimated that around 70% of Australians with life insurance hold it through their super fund. Having insurance through your super fund is tax effective and has various advantages such as having cheaper premiums and usually having fewer health checks. Most funds offer three different types of insurance through super, life insurance, total permanent disability (TPD) and income protection insurance, each of which cover different aspects.
From 1 July 2021, the general pension transfer balance cap will increase from $1.6m to $1.7m due to indexation. If you’re thinking of retiring and have a large amount in your transfer balance account, it may be wise to plan ahead so you can take advantage of this increase. By way of background, the transfer balance cap started in 1 July 2017 and is effectively a lifetime limit on the total amount of super that can be transferred into retirement phase income streams, this includes most pensions and annuities.
Castletons is one of the very first accountancy firms in Australia to launch a free mobile Tax App. The great news is that the APP can be downloaded free onto your iPhone,iPad or Android devices. It's packed full of some really useful Tax Tables, Calculators and important financial dates, all of which you will be able to access for free, anywhere you have an internet connection on your device.