The budget has not uncovered any major Superannuation changes. With the call on the election date imminent, this budget has left out any changes that could be considered controversial. You will see below that minor tweaks have been preferred to further structural reform. This measure coupled with the bring forward rule below could help clients at this age to boost their Superannuation savings significantly.
Change to the Work Test
The Government will raise the age of voluntary contributions to Super from 65 to 66. This move is in line with the raise in the age of the old age pension which will is continuing to rise.
Bring Forward Rule for NCC’s
The age for Non Concessional Contribution bring forward is being lifted from 65 to 66 to match the changes to the work test.
The age limit for spouses to receive contributions will increase from 74 from the current age limit of 70.
Extension of time limits for Superstream implementation for Rollovers has been delayed to 31st of March 2021 which is an extension from 30 November 2019.
Super Insurance opt in delayed
The already passed measure to allow Super members under the age of 25 with balances under $6,000 to opt into Insurance has moved from July to October 2019.
Increased funding for ATO to chase unpaid Super & tax
$42.1 million has been budgeted for the ATO to chase unpaid superannuation and tax. The measure will target high net wealth individuals.
Permanent Tax Relief for Large Fund Mergers
The Government has made the tax relief for members of Superannuation funds that merge permanent. This means any losses in old Superannuation funds can be rolled over to the new entity if they merge.
ADF members have choice of Super
ADF members can choose to stay and contribute to Super after they are discharged from the forces.
6 Member SMSF’s dropped
The Government has decided to walk away from its proposed legislation to increase the number of SMSF members from 4 to 6.
For further information in regards to what has been presented above, please call to discuss.