The card that entitles you to $500

Font Size:

Support payments
The third and fourth one-off Economic Support Payments of $250 will be made to eligible Australians from November 2020 and February 2021.

The payments aim to provide financial support for age and disability pensioners, veterans, people on carer payments and family tax benefit recipients.

Anyone eligible for a Commonwealth Seniors Health Card (CSHC) and Pensioner Concession Card (PCC) will also receive the payment, which will be paid into around five million recipients’ bank accounts. Check if you are eligible here.

Age Pension rates
The twice-yearly indexation of the Age Pension is due to occur in March. The rates were left on hold in September due to a drop in the consumer price index as the nation continued to battle the economic impact of the coronavirus.

Super changes, in case you missed them
The following changes to superannuation came into effect on 1 July 2020.

Super funds must allow for portability of super and allow members to bring their own super funds to new jobs to prevent people accumulating funds and paying multiple sets of fees. The government will be monitoring and taking action against funds that are underperforming.

Until June this year, super members aged 65 and 66 were unable to contribute to super unless they could prove they were working at least 40 hours over 30 consecutive days. A change on 1 July means those members can continue to put up to $25,000 into their retirement savings as a concessional contribution, or $100,000 as a non-concessional contribution.

The extension in July of the Bring Forward Rule allows retirees aged 65 and 66 to make up to three years’ worth of voluntary after-tax (non-concessional) contributions to their super, to a maximum of $300,000, as long as no additional after-tax contributions are made for two years following. The Bring Forward Rule lasts for five years and then expires. Super members with total balances of less than $500,000 will be able to carry forward their unused concessional cap amounts from 1 July 2018.

The age limit for receiving spouse contributions to super has been lifted from age 69 to 74. This means that a person can now keep making voluntary payments to their partner’s super until that person turns 74. The work test must be met prior to the spouse contributions being made to the fund.

In the 2020 Federal Budget, the government announced it would create a new online comparison tool called YourSuper, which would rank funds by fees and returns.

Royal commission
The Royal Commission into Aged Care Quality and Safety is due to hand down its final report in February. It has already concluded that the aged care system fails to meet the needs of its older, vulnerable, citizens. You can download a full list of its recommendations to date here.

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

You’ve quit full-time work, now what to do with that nest egg?

A wider range of products and services must be developed for retirees, says adviser.

How to give retirees the confidence to spend

An efficient retirement spending system is still a work in progress, writes Andrew Boal.

Our complex system makes independent advice critical

Complex system is setting people up to fail, writes Xavier O'Halloran.

Written by Janelle Ward

0 Comments

Total Comments: 0

    FACEBOOK COMMENTS



    SPONSORED LINKS

    continue reading

    Health

    Mozzies biting? Here's how to choose a repellent - and how to use it

    Mozzies biting? Here's how to choose a repellent (and how to use it for the best protection) Shutterstock Cameron Webb,...

    Entertainment

    Sir Bob Geldof on grief, fame and getting through it all

    I've hardly started questioning Sir Bob Geldof before he is off on a long, sweary rant about everything he thinks...

    Australia

    Abandon Australia Day and choose the history we want to celebrate?

    Australia Day is the anniversary of the arrival of the First Fleet in Australia. On 26 January 1788, 11 convict...

    Community

    Speaking up for the disappearing art of listening

    Columnist Peter Leith is 91 and describes himself as "half-deaf and half-blind". But he sees and hears a lot and...

    Beauty

    Hyperpigmentation: How to tackle those tricky dark patches on your ski

    There are plenty of great things about summer - sunshine, picnics and fruity cocktails immediately spring to mind - but...

    Australia

    Enthralling, dystopian, sublime: NGV Triennial has a huge 'wow' factor

    Refik Anadol: Quantum memories 2020 (render) custom software, quantum computing, generative algorithm with artificial intelligence (AI), real time digital animation...

    Australia

    Where to eat, drink and play on Kangaroo Island

    Australia's third largest island is an oasis of pristine wilderness, premium produce and hidden secrets ripe for discovery. Easily accessible...

    COVID-19

    Will you need a vaccination to visit Australian venues?

    State premiers have suggested that once vaccinations begin in Australia, those without vaccinations may be banned from visiting some venues...

    LOADING MORE ARTICLE...