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ATO Urges Australians to Ignore Superannuation Misinformation
The Australian Taxation Office (ATO) has recently cautioned the public against misleading claims regarding changes to superannuation preservation and withdrawal rules purported to take effect on June 1. These claims have been dismissed as "fake news".
Several online articles have circulated false information indicating that the superannuation preservation age would be raised from 60 to 70, commencing from June 1, 2025. Additionally, some articles incorrectly stipulate that lump sum withdrawals will be limited to 50% of an individual’s total super balance rather than being fully accessible upon retirement.
ATO’s Clarification on Superannuation Rules
Emma Rosenzweig, ATO’s Deputy Commissioner for Superannuation, has reiterated the current regulations which confirm that the preservation age remains at 60 for anyone born after July 1, 1964. Rosenzweig advised individuals to critically assess the sources of the information they encounter and to rely on trusted channels, including the ATO website, their super fund, registered tax agents, or licensed financial advisers.
She emphasised, “Be cautious of websites that attempt to collect personal information, such as your Tax File Number (TFN), identity details, or myGov login credentials.”
The Rise of Misinformation
Numerous websites have emerged disseminating misinformation, particularly targeting Centrelink recipients and promoting dubious claims about cost-of-living assistance or payment increases.
Hank Jongen, the general manager of Services Australia, noted these sites are designed to attract traffic through sensationalised headlines, leveraging the interest in financial support for indirect revenue through advertising. While the primary aim may not necessarily be to harvest personal information, he strongly advised against sharing sensitive information to access so-called payments or benefits.
Upcoming Genuine Superannuation Changes
Despite the spread of falsehoods, there are legitimate modifications to superannuation regulations set to take effect from July 1, 2023:
- Superannuation Guarantee Rate: The employer contribution will rise from 11.5% to 12%, marking the final legislated increase.
- Parental Leave Pay: Superannuation contributions will also be applied to the government’s Parental Leave Pay, resulting in an additional 12% contribution to super funds for parents.
- Transfer Balance Cap: The cap on the amount of super that can be transferred into the retirement phase will increase by $100,000, from $1.9 million to $2 million.
- Tax Rate Increase: There is a proposal to raise the tax rate on earnings from superannuation in the accumulation phase from 15% to 30% for balances exceeding $3 million, though this change is yet to be formalised into law.
Conclusion
As Australians prepare for the upcoming changes in superannuation, it is crucial to discern fact from fiction in the information landscape. The ATO encourages citizens to remain vigilant and consult authentic resources to ensure they have the correct details regarding their superannuation.
