The ATO has published the Superannuation Changes Industry Roadmap which details the changes affecting the super industry up until the end of December 2020.
The changes include those resulting from the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Act 2019 and the Treasury Laws Amendment (Putting Members’ Interests First) Act 2019 which have both been passed and given royal assent.
The Treasury Laws Amendment (2018 Superannuation Measures No. 1) Act 2019 allows individuals to avoid unintentionally breaching their concessional contributions cap when they receive superannuation contributions from multiple employers. Instead of receiving contributions into superannuation, an employee may apply to the Commissioner to opt out of the Superannuation Guarantee regime in respect of an employer and negotiate with the employer to receive additional cash or non-cash remuneration.
The Treasury Laws Amendment (Putting Members’ Interests First) Act 2019 prevents trustees from providing insurance on an opt out basis to members who are under 25 years old and begin to hold a new product on or after 1 February 2020 and to members who hold products with balances below $6,000.
However trustees will be allowed to provide opt out insurance to new members aged under 25 years and members with balances below $6,000 where the member is engaged in a dangerous occupation.
By 1 November 2019 trustees must identify members who may be affected by the measure and notify these members by 1 December 2019.
In all circumstances the member may opt in to insurance offered by the trustee by making a direction to the trustee.