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How changes to superannuation in Australia will affect you

Cameron Carpenter

Australia's superannuation scheme is getting its most extensive overhaul since it was introduced in 1992.

Australia's superannuation scheme is getting its most extensive overhaul since it was introduced in 1992.

So what exactly does it all mean for you and your family?

1. Superannuation payments will increase from July 1:

The employer super guarantee (SG) has Β risen from 9.5 per cent to 10 per cent.

This is the minimum percentage of your salary that your employer is required to pay into your super.

If your employment contract states superannuation is paid on top of your base salary, your employer will pay for the increase.

But if your contract states superannuation is included as part of your total package, the increase could get taken from your base salary.

It's worth speaking with your employer to determine which category you are in and make sure the increase is not getting taken from your base salary.

2. If your superfund is underperforming, they will have to tell you:

All superannuation funds in Australia are now required to meet an annual performance test. Superannuation funds that fail the test will be required to inform members in writing.

So if your fund is underperforming, you'll be notified by October 1, and it will be up to you to make a switch. If you don't take any action, your retirement savings will remain in that underperforming fund.

All the underperforming funds will also be listed on the YourSuper website.

3. It's easier than ever to compare your superannuation fund:

The Australian Tax Office now offers a superannuation comparison tool on its website called YourSuper.

It displays a table of the super products available to you, ranked by fees, risks, and total investment returns over six years.

Right now, the tool only compares MySuper funds, which are considered 'default' funds, but within the next 12 months, the list available will grow.

The YourSuper tool also provides links to help you consolidate your super accounts.

4. Your superannuation fund will follow you when you change jobs:

When you change jobs, your existing superfund will remain the same. Essentially, your superannuation account will be 'stapled' to you.

This change comes into effect on November 1 and aims to minimise unnecessary fees paid by Aussies who hold multiple super accounts.

When you can access your superannuation?

Your date of birth Age you can access your super (preservation age)
Before 1 July 1960 55
1 July 1960 β€” 30 June 1961 56
1 July 1961 β€” 30 June 1962 57
1 July 1962 β€” 30 June 1963 58
1 July 1963 β€” 30 June 1964 59
After 1 July 1964 60