Little known super change could cost you thousands
A LITTLE-known superannuation law change could hit Australians hard, an academic has warned.
Queensland University of Technology legal and accounting expert Alastair MacAdam said changes to the anti-detriment benefit provided by many superannuation funds could cost thousands.
"We've been told that the Federal Government's superannuation changes will affect only 4% of people," he said.
"But removal of the superannuation anti-detriment benefit will affect many ordinary people who have a spouse or dependent children - even people on modest government schemes could lose $100,000 or more. It applies to everyone."
Mr MacAdam said the anti-detriment payment was paid to an eligible spouse when a fund member died.
He described it as a "refund" of all the contribution tax and said it went to the dependant spouse and/or children on top of the balance of the super fund.
"For many people with modest superannuation balances this could be anything from $10,000 to $30,000 extra super that their dependents will miss out on after July 2017," he said.
Mr MacAdam said the removal of the payment had largely gone unnoticed by finance commentators.