What does the 2019 Federal Budget mean for your super?

On 2 April 2019, the government released their 2019/20 Federal Budget. Compared to previous budgets in which the government proposed substantial changes to super, this year’s budget will have little impact on most people’s retirement savings. We’ve put together the following summary of the proposed changes which may affect you.

It’s important to note that these changes have not been made law. We’ll keep you updated if any proposals pass legislation.
 

Proposed changes to super

Work-test exemption for voluntary super contributions

From 1 July 2020, if you’re aged 65 and 66, you’ll be able to make voluntary concessional and non-concessional super contributions without meeting the work test requirements (40 works hours over a 30-day period).


Extension of the ‘bring-forward’ rule

The ‘bring-forward’ rule, which currently allows people under 65 to make three years’ worth of non-concessional contributions in one year, will be extended to those aged 65 and 66. This means people affected will be able to make voluntary non-concessional contributions of up to $300,000 in a single year.
 

Increase of age limit for spouse contributions

The age limit for spouse contributions will be increased from 69 to 74 years. Currently, if you’re 70 or over, you cannot receive a contribution made by your spouse on your behalf.

LUCRF Super supports the above measures (and any future ones) that allow members to better prepare for financial dignity in retirement. You should consider whether you, or your spouse, are able to make additional contributions before you reach retirement.
 

Other proposed changes that may affect you

Tax cuts

The following tax cut proposals are designed to be implemented over a five-year period.

Start datesDetails

Immediately

An increase to the low and middle-income tax offset, providing up to $1,080 for singles and up to $2,160 for dual-income families.

From 2022/23

An increase in the income-tax threshold for the 19% tax rate from $41,000 to $45,000. There’ll also be an increase in the low income-tax offset from $645 to $700.

From 2024/25A decrease in the 32.5% tax rate to 30% for Australians earning between $45,001 and $200,000.


Energy Assistance Payment for pensioners

The government is proposing a one-off payment of $75 for single pensioners and $125 for couples to assist with their energy costs.

Remember, we’re here to help

While these Federal Budget changes are yet to be implemented, we can help you now with making contributions, consolidating your super, or other matters regarding your super or pension. Our qualified and friendly financial advisers can help you achieve your financial goals now and in retirement – at no extra cost to you*.

*Our advisers can only provide advice that relates to your LUCRF Super accounts.

 

 

 

The right advice can help you achieve your financial goals now and in retirement.

We'll call you back!

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.