Self-Managed Super Funds

2. From 1 April 2020, trustees will be prevented from providing opt-out insurance to a MySuper or choice product member where:

• the account balance that relates to the product is <$6,000 and has not been $6,000 or more on or after 1 November 2019,
• the member is under the age of 25 and begins to hold the product on or after 1 April 2020.

Importantly, where a member meets one of the abovementioned criteria, the trustee may only provide insurance where the member elects to obtain or maintain the insurance cover, or the member has been classified (by the trustee or trustees) as being employed in a dangerous occupation. The proposal has been legislated.

3.  From July 1, 2019, people aged 65 to 74 with a total superannuation balance below $300,000 will be able to make voluntary contributions for 12 months in the first year after they last met the work test. However, existing annual concessional (and, the carry forward rules) and non-concessional contribution cap (and, the bring forward rules) limits will continue to apply to the contributions permitted by the exemption. The proposal has been legislated.