Super Money Tree – Soaking up the Fertilizer


Dealing with Extra Fertilizer

Since the introduction of the Superannuation Guarantee Charge (“SGC”) in 1992, nearly every federal budget has made a tweak here and there to SGC, making this a very complex area of finance for every Australian.

There is some good news coming from the budget this year, though, meaning every Australian can grow their money tree.


Free Exit

Changing superannuation accounts has for a long time meant that the super provider snips a few branches as you walk out the door. The federal government proposals to abolish exit fees, meaning your money tree can continue to blossom.

Life Insurance for Millennials

Life Insurance has been part of the super package for a long time. For many young people, the levels of life insurance offered through superannuation is, in many cases, inflated and not required. The government proposes to lesson the compulsory life insurance burden within super accounts for people under 25.

Less fruit picked to pay for unnecessary insurance means more opportunity for growing that money tree, and hopefully having a full orchard by retirement.

But remember, no matter how old you are, if you have obligations such as mortgage, children, spouse and anything or anyone else that depends on you and your income, seek advice to obtain the correct cover of life insurance.


Lost your tree?

For those Australians that have moved jobs and lost track of their super accounts, the government proposes to limit the fees that super providers can charge on inactive accounts. This is more good news for growing your money tree, but don’t let this be you. There are many ways to find your ‘lost’ super.

  • Have your current known provider do the gardening and find any lost super
  • Search via the ATO for any super accounts


In a nutshell…

Although trimming the super money tree seems to be a favoured past time of many governments, this year seems to show some positive changes. Nevertheless, take control and be your own gardener. Make it your mission to check the health of your own money tree to ensure the fruit is growing well for your future.

  • Check the balance to ensure your employer is paying their obligations regularly (quarterly at least)
  • Check your current insurance cover to ensure you are covered for what you actually need for your responsibilities
  • Find your trees! Take the time to search for any lost super and consolidate your accounts to save on trimming of branches through fees

There are a few bad apples out there that charge excessive fees and their annual returns are not as ripe as others – take the time and do your own cultivation and not lose any of your branches to worms.



– Karen Patterson