Financial Planning, Superannuation

The Latest Superannuation Changes You Need to Know

16 July 2021

Most Australians don’t really give much serious thought to their superannuation until their retirement draws near.

As you begin to plan for retirement and prepare your budget, you may realise that you don’t have enough super in your fund to fully support you. 

This realisation tends to send many of us into a panic. It is also often the catalyst for many people to more seriously consider superannuation strategies and options.

While you can give your super a quick pre-retirement boost by making extra voluntary super contributions, you will likely see far better results by making smart super decisions at an early age. 

It is also important to keep up to date with the ever-changing regulations and policies around Australian superannuation funds.

Here are 3 Important Superannuation Changes You Need to Know:

  • The Super Guarantee Rate has Increased for the First Time Since 2015

On 1st July 2021, the Super Guarantee rate increased from 9.5% to 10%. This is the first increase this compulsory super contribution has had since 2015. 

It is also scheduled to continue increasing up to 12% by 2028. 

While it is only a small increase, the amount adds up over a full year. This increase will go a long way to support a better retirement lifestyle for millions of Australians.

  • Your Super Fund Is “Stapled” to You

This new role basically means that you will be “stapled” to the first super fund you sign up with or to the fund you are with now.

When you first began working as a teenager, you probably did not give your super fund much thought at all or even know how super worked. 

Then when you moved onto your next job, you likely signed up for a new fund with your new employer. Because taking the fund with you was too much of a hassle or you didn’t understand the consequences of opening two separate funds.

Continuing down this same pattern, many Australians are left with multiple super accounts of which they have to pay fees for every different fund.

“In fact, research from the ATO shows that 1 in 5 Australians have 2 different super funds and some people have over 4 accounts!”

However, from 1 November 2021, your current fund will now move with you when you move jobs. What this means is that you won’t hit retirement age and find out that you have 10 different accounts and have lost a significant chunk of your retirement savings to unnecessary superannuation fees. 

But you don’t have to stick with the same super fund forever. You still have the option to change into a new fund any time you like if you find one with lower fees or better super investment growth options. 


  • Your Fund Has to Perform

If you have ever been worried about your super fund’s performance, there are now regulations in place to ensure all super funds perform adequately.

Superannuation funds now undergo annual performance tests to ensure their performance reaches a certain benchmark. If they fail to meet these set benchmarks, they’re obliged to let you – as a client – know about it.

If your funds underperform the benchmark for two consecutive years, the government can actually step in and block that fund from taking on new members. That is, until it proves that it can achieve sufficient returns again.

How is your Super Balance Looking?

Whether you’re approaching retirement and needing to boost your super balance, or whether you are starting early and want to get the most out of your super, Cambio Group can help. 

For more than 20 years, Cambio Group has helped people just like you make intelligent and informed financial decisions. 

As experienced and dedicated financial advisors, we are consistently aiming to make a positive difference in the lives of all our clients. We can provide you with personal financial and retirement planning services in the Gold Coast, with additional accounting and bookkeeping services. 

If you need help with your financial journey, book a complimentary consultation today!

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.

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