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2018 federal budget update

At Club Plus Super, we’re committed to providing our members with up-to-date information on retirement planning. This could assist you with making any changes to steer your investment in the right direction. Here’s a snapshot of some of the main proposed changes that may impact your super or pension. If approved by Parliament, these proposals are expected to commence from 1 July 2019 onwards.


  1. No exit fees, more freedom
    With the proposed changes, super funds will not be able to charge exit fees, so you can move or consolidate accounts without exit penalties. Managing one super investment gives you greater control of your retirement nest egg. With only one set of fees to pay, you should also have even more money saved for your future.
  2. Less fees, more savings
    There will be a 3% cap on administration and investment fees for accounts with balances less than $6,000. We work hard to deliver good value super and ensure you are making the most of your contributions.
  3. Automatic merging of multiple inactive accounts
    Super accounts that have not received a contribution for 13 months and with balances below $6,000 will be classified as inactive and transferred to the Australian Tax Office (ATO). The ATO will match these accounts with the member’s active account, where possible.
  4. Insurance in super
    Insurance cover will not be automatic for under 25’s, accounts with balances below $6,000, or inactive accounts. Instead, members would have 14 months to ‘opt in’ to receive insurance cover or it will be cancelled. Applying for insurance at a later date may require you to provide detailed medical information.

To consolidate your super accounts, find missing super using our SuperMatch2 service or want more information about your insurance options, call our Member Hotline on 1800 680 627.


  1. Fund retirement with home equity
    The Pension Loan Scheme will be extended to all Australians of Pension age. This will give pensioners the opportunity to release equity in their home and use it as an income stream. Full rate pensioners could boost their income by up to $11,799 for singles and up to $17,878 for couples to support their standard of living in retirement.
  2. Retirement income framework
    The Government is introducing a retirement income framework to safeguard retirees’ super funds and to offer them more choice, flexibility and retirement products. All super funds will be required to develop a strategy that will assist members in achieving their retirement income objectives. This includes offering products that will provide an income for life.
  3. Earn more without reducing your payments
    The Pension Work Bonus (PWB), the amount exempted from the pension income test, is set to increase from $250 a fortnight to $300 a fortnight. This is in addition to the income free area, which is currently $168 a fortnight for a single pensioner and $300 a fortnight (combined) for a pensioner couple. The PWB will also be extended to self-employed earnings.
  4. Exemption from the work test
    Retirees (aged 65 – 74) with balances below $300,000 will be exempt from meeting the work test for 12 months after the financial year in which they retire, which will allow them to continue to make voluntary contributions to super. This is a great opportunity to benefit from any unused concessional contribution allowance and to add to your investment.


Financial Advice

To find out how the proposed budget changes may impact your super or pension speak to one of our financial experts. Contact Club Plus Financial Planning for a no obligation appointment at no additional cost on or fill out the appointment request form.

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