On Tuesday 2 April, the Federal Government released their 2019-20 Budget.

There were few superannuation changes, but we’ve summarised the main proposals affecting AvSuper’s members below, and provided some thoughts on how we believe the measures may apply in practice, should they become law.

With a federal election expected to be called any day, the progress of these proposals and measures would appear to depend on the outcome of the federal election. As always, we will keep members updated as and when legislation occurs.

Remember that all Budget proposals need to be legislated and details may change before these proposals become law, especially if there is a change in Government.


From 1 July 2020, eligibility to make additional voluntary contributions without needing to meet the “work test” will include 65 and 66 year olds.

Members aged 65 and 66 will also be given access to the bring forward arrangements, which currently allow members under 65 to make up to three year’s worth (ie up to $300,000) of non-concessional contributions in one year.

In addition, spouse contribution age limits will increase from 69 to 74 years.

— AvSuper comment on building super —

These are small but sensible measures that will enable older members to continue building their super.

AvSuper members seeking to take advantage of the new contribution rules will however need to also remember that there have been no changes to the contribution caps or the maximum transfer balance cap (for new income streams).

— Opt-in insurance – confirmation —

The Government confirmed its intention to legislate new opt-in insurance rules for new members under 25 and/or with an account balance below $6,000.

However, if this proposal is legislated, the start date is delayed until 1 October 2019.

— AvSuper comment on opt-in insurance —

We’ve been watching this proposal for some weeks and much remains unclear. While younger members and low account balance holders will no longer receive automatic insurance upon joining AvSuper under this proposal, and will have to specifically opt-in for such insurance, it remains unclear how this would apply in practice. We will write to those AvSuper members likely to be affected by this proposal as more information is known.