Help us build and protect your wealth, with private wealth services tailored to your specific needs.
24th June 2020 - Private Wealth
A level of life insurance and total and permanent disablement cover, and in some cases income protection, was often automatically provided when people joined a super fund. Recent legislative changes are designed to change that.
The changes to legislation on 1 April 2020 affect when cover starts for new members and how long their cover remains in place. When it comes to understanding the impact of these changes, it’s helpful to break them down by the different ways individuals may be affected.
Young fund members: If you’re under 25 and join a super fund for the first time from 1 April 2020, cover will not automatically be provided. You will need to have at least $6,000 in your account, in addition to being 25 years old, before cover may be automatically provided.
Low account balances: Even if you’re 25, or older, when you join a super fund for the first time from 1 April 2020, you’ll need to have at least $6,000 in your account before insurance cover may be automatically provided. If you’re an existing super fund member and have an account balance that doesn’t reach $6,000 at least once at some point between 1 November 2019 and 31 March 2020, your insurance cover may be switched off on or after 1 April 2020.
Contributions have stopped: Since 1 July 2019, any super account which hasn’t received any contributions for 16 months is considered ‘inactive’. As a result, cover will be switched off every time this happens, unless you’ve told your fund you want to keep the insurance in place. Of course, you can contact your super fund if you would like for your cover to be reinstated once it is switched off (subject to relevant reinstatement and eligibility criteria) or to have cover remain in place.
These changes are designed to help prevent insurance premiums from unnecessarily reducing retirement savings in super. However, they may result in some members who want to be covered, not having insurance in place.
If you would like more information please call 1300 ELSTON or contact us to speak to one of our advisers.
This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.
11 November 2024
Rising interest rates are making it harder for young Australians to buy homes. As a result, many are turning to their parents for financial support to make their homeownership dreams a reality. But what's the best way to support them, and are there any pitfalls to avoid? Read more
6 November 2024
When Craig Roberts recently completed his Masters in Financial Planning and won the Gwen Fletcher Award for topping his CFP class, he didn’t make a big fuss about it. Anyone who knows Craig, knows he’s a very humble guy. Read more
1 November 2024
Downsizing your house can be an emotional decision but there are many upsides to it too. Elston Strategy Adviser Christie Wilson explains how it can benefit your super. Read more
28 October 2024
A lot of Australians like to give back. We’re a generous country. Giving our time through volunteer work and donating to charity is simply what we do. It just seems to be part of our life. But what about more structured forms of philanthropy? Read more
15 October 2024
When we caught up with Sam McCarthy from Fresh Finance, he was happy to give his take on what it's like to team up with Elston and work collaboratively to help clients. Read more
10 October 2024
With recent data breaches at Optus and Medibank, cyber security is back in the headlines. In this video Ben McNamara tells us some of the things we can all do to stop scammers stealing our personal information. Read more
8 October 2024
If you have a child or a grandchild who’s somewhere between school age and settling down with a family of their own, this article might be just the sort of thing you’d like to share with them. Read more
1 September 2024
Spring is a great time to throw open the doors, roll up your sleeves, crank up your favourite house-cleaning music, and clean out those cobwebs. It's also a good time to spruce up your finances. Read more
26 August 2024
When you think about estate planning, you’re probably focused on who you should leave your assets to. But through the estate planning process, you might also find yourself thinking about the legacy you could be leaving. Read more
20 August 2024
Our inaugural Team Development Day brought together a great group of trusted partners and professionals. And from all accounts the event was a big hit. Watch the video to learn more. Read more
8 July 2024
The arrival of the 2023/24 tax year brings with it a number of opportunities. In this article our Elston advisers have focused on four options that you, a friend or someone in your family might want to consider. Read more
15 June 2024
We all daydreamed about what it would be like to be catapulted into a life of riches. But if it really happened to you, what would you do? There are 8 things you might want to consider. Read more
2 June 2024
With the end of the financial year fast approaching, some of us are thinking about wrapping things up neatly in a bow and making sure we don’t get stuck with an unnecessarily large tax bill. But for others, the end of the financial year is a beginning. Read more
16 May 2024
On the 14th of May Treasurer Jim Chalmers delivered a Federal Budget that was in many ways unsurprising. There were prudent and responsible measures, cost of living initiatives and promises to move on big issues like housing. Read more
12 April 2024
This time of year, in the weeks leading up to June 30, is like a big game of chess. This is when advisers are working out which moves are going to be the ones for those clients who are hoping to improve their tax position. Read more
21 March 2024
The universities aren’t offering Masters of Empathy or Diplomas in Advanced Listening. But maybe they should be. In this Professional Planners article Elston Strategy Adviser Jessie Hinds talks about the soft skills that enable advisers to really build trust with their clients. Read more
11 March 2024
Mark Westcott from Rural Succession Solutions recently interviewed Elston Director and Private Wealth Adviser Peter McVeigh to talk about some of the frequently asked questions on rural succession planning. Read more
6 March 2024
Self-Managed Super Funds (SMSFs) have gained immense popularity in Australia. But just because ‘everyone else’ is doing it, does that mean you should too? FOMO is never a good reason to make a major investment decision. Read more
5 February 2024
The recent decision to invite Lynda McKie onto the Elston Board has been warmly welcomed by workmates, clients and colleagues. In this video Lynda tells us what she sees as the Board’s purpose, and what skills and attitudes she wants to bring to her new role. Read more
31 January 2024
A growing number of Australian investors are now meeting the criteria of ‘sophisticated investor.’ But should they be looking into what kinds of protections they may be giving up, before they leap into it? Read more
16 January 2024
In this video, Elston Co-Founder and Wealth Adviser Peter McVeigh explains what individually managed accounts are, and tells us how they can help to deliver tax and transparency benefits. Read more
Join our mail list for the latest insights and updates from Elston.
Elston Group - ACN 130 771 523
EP Financial Services Pty Ltd - ABN 52 130 772 495 / AFSL 325 252
© 2024 Elston Financial Solutions ‧ Privacy Policy ‧ Created by 7thVision This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
