Beware fake news about super
With so many scams and so much misleading information online, it’s important to check official sources.
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The Australian Taxation Office (ATO) and other experts are warning Australians to beware of false reports claiming there will be major changes to the superannuation system from 1 June 2025.
An article circulating on social media and some websites claims that significant reforms are imminent, including changes to the preservation age and a cap on lump-sum withdrawals.
These reports are NOT true, but they have caused concern and confusion among senior Australians who are planning their retirement or have already retired.
ATO Deputy Commissioner Emma Rosenzweig responded to the false information by confirming that the maximum preservation age (the age when you can access your superannuation savings on retirement) is 60 for anyone born from 1 July 1964.
She said taxpayers who have questions about the legitimacy of tax information should refer to the ATO’s website or speak to their registered tax professional if they have one.
“This is classic fake news,” she said of the reports doing the rounds. “Always consider the source of information you see, and if in doubt go to trusted sources such as the ATO website, your super fund website, your registered tax agent, or licensed financial adviser.”
While the reported 1 June changes are false, there will be some changes to super this year. These include:
Increase in superannuation guarantee rate: From 1 July 2025, the super guarantee – that is, the percentage of employees’ wages employers are required to pay into super accounts – will increase from 11.5% to 12.0%.
New tax on high super balances: Before the election, the Federal Government foreshadowed the introduction of a 30% tax on earnings from superannuation balances exceeding $3 million. This change, which has been met with considerable resistance, would double the current rate of 15%. This was due to be introduced on 1 July, but the government has not yet legislated for it to go ahead.
Adjustments to super thresholds: The Transfer Balance Cap will increase from $1.9 million to $2 million from 1 July 2025, allowing retirees to hold more in tax-free retirement phase accounts.
The spread of misinformation regarding superannuation reforms underscores the importance of verifying information through official channels. In an era where digital misinformation can easily proliferate, staying informed through credible sources is crucial for effective financial planning and retirement preparedness.
A recent Sydney Morning Herald article article suggests that super regulators and super funds create clear and consistent channels of information.
Remember: If you have concerns about super, you should consult a trusted, registered financial adviser, the Australian Taxation Office, or your fund provider for accurate and up-to-date information.
National Seniors Australia (NSA) members also have access to our Financial Information Consultant. Details are here.
Related reading: SMH, Australian Super, ATO, Yahoo! Finance
Disclaimer: This article and any links provided are for general information only and should not be taken as constituting professional advice. National Seniors is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how any information provided relates to your unique circumstances.
