Superannuation Changes Post 1 July 2021

Justin Enright • June 30, 2021

Superannuation Changes Post 1 July 2021

The superannuation landscape has been punctuated by change forever and continues to do so.

There is now an online tool launched by the government that allows individuals to rank and compare default superannuation products by fees and performance. See https://www.ato.gov.au/Calculators-and-tools/YourSuper-comparison-tool/

The performance test ranks all default MySuper products relative to a benchmark, and any product that has returned 50 points below its benchmark is considered an under performer.

From 1 November 2021 when a worker changes employment they will retain their existing super fund as a result of "stapling". The aim of the introduction of stapling is to reduce the amount of multiple superannuation accounts that an individual may have.

From 1 July 2021 there are a raft of other changes in the superannuation environment as follows:

There is an increase in the superannuation guarantee from 9.5% to 10.0%. This will equate to an extra amount of $6.50 per week into superannuation for the average Australian. Annual increases in the superannuation guarantee will see the superannuation guarantee reach 12.0% by 1 July 2025;
The maximum number of members in an SMSF increased from 4 to 6. This will allow for a SMSF to accumulate a larger total balance and utilise investment opportunities accordingly;
The concessional (deductible) contributions cap increases to $27,500 from $25,000 as a result of indexation. Equally the non concessional (non deductible) contributions cap increases to $110,000 from $100,000;
The transfer balance cap being the limit on how much can be transferred into a tax free retirement account increases to $1.7M from $1.6M.
Individuals aged 65 and 66 can now make up to three years of non concessional contributions which equates to a potential maximum contribution of $330,000.

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Michael Kennedy Retires from Morse Group

By Justin Enright • October 12, 2023

Michael Kennedy, FCPA Strategic Business Advisor at Morse Group based at our Norwest practice office has marked his last day as a professional accountant on 30 June 2023. Michael started his journey in professional accounting commencing work as a graduate accountant in 1976 at then Price Waterhouse after completing a Bachelor of Commerce with Honours at the University of NSW. After training as an auditor and completing what was then called the Professional Year Michael yearned to go back to the Country after originating off a farm from Tallimba near West Wyalong in the Central West of NSW. Shortly thereafter Michael took a role in Dubbo working for Frank Darcy in Dubbo with a large proportion of primary production clients from the Coonamble area and other parts of Western NSW. Just two years later Michael was Frank Darcy’s Partner and Darcy Kennedy came into being. In the ensuing 24 years Darcy Kennedy grew into an award winning team of more than 100 with 12 Partners. After Darcy Kennedy transitioned into Investor Group now known as Findex Michael moved back to Sydney. This saw Michael as a Partner in a firm at Norwest being Macquarie Partners for 4 years and then Deloitte as a Partner for a further 4 years. In 2016 Michael commenced at Morse Group and shortly thereafter the Norwest practice office of Morse Group was established by himself and Justin Enright. This was the Renaissance of the client facing advice facet of Michael’s career. The Norwest office has continued to be the fastest growing practice office in Morse Group since. Michael most recently focused on advising clients (especially family groups) across Morse Group on tax and business development strategies with emphasis on the tax aspects of superannuation and self managed superannuation funds. Value laden high quality client advice was the key driver throughout Michael’s career in professional accounting. “I leave the profession with no regrets after a wonderful journey …not bad for a boy from Tallimba…and now finishing with 7 wonderful years at Regional firm Morse Group which is 90 years old and thriving…led by Justin Enright who worked at Darcy Kennedy as a graduate in the early 90s and is modelling his firm on the values and client service we extolled in Dubbo “said Michael Kennedy. “There are extremely few people in the world who it can be said “do more for an organisation than what the organisation has done for them”. Michael Kennedy is one such person. He has multiple examples of the same stretching from the start of his regional career at Darcy Kennedy through to the finale at Morse Group. We at Morse Group are extremely proud of and thank Michael for all of his client service, counsel, guidance, mentoring and generosity. Testament to this is the outpouring of gratitude from a plethora of advisors who Michael has mentored over many years. We congratulate Michael on this extraordinary career and wish himself, wife Kaylene and extended family all the very best for a well earned retirement” said Justin Enright, Managing Partner of Morse Group.