With a Federal election to be called next year, time is of the essence for superannuation related measures, draft legislation and Bills to be passed into law.
Treasury has released exposure draft regulations and explanatory statement to make minor and technical changes that address unintended outcomes arising from the inability of recipients of certain non-capped defined benefit income streams (that were commenced on or after 1 July 2017) to address excess transfer balance amounts.
Treasury has confirmed that the proposed increase to the cut-off age from 67 to 75 for the bring forward rule for non-concession contributions will allow individuals approaching 75 years of age to bring forward non-concessional contributions from future years (i.e. during which they will be aged 75 years or over). This is contrary to the initial intent of the proposed change and provides an opportunity for those approaching 75 to boost their retirement savings.
In addition to the ECPI choice of calculation measure and introducing the ‘work test’ for personal deductible superannuation contributions, Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021, introduced to the lower house on October 27, 2021, included a number of other superannuation related matters.
The 2021 Federal Budget included a proposed measure that from 1 July 2022, the work test would no longer be required to be met by individuals aged 67 to 74 for voluntary contributions like non-concessional contributions and salary sacrifice contributions.
The Government introduced to the lower house on October 27, 2021, Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 that includes six measures, of which five relate to superannuation.
Accurium is delighted to announce it will be joining the CountPlus network. As of 1 November 2021, Key Management Personnel at Accurium together with CountPlus Limited will acquire Accurium from its current owners, Challenger Limited.
In July, the Government released a consultation paper on the long-awaited retirement income covenant. The aim of the new measure is to improve the retirement outcomes of Australian retirees by requiring the custodians of their savings, superannuation funds, to develop coherent retirement income strategies for their members. See our earlier blog for more details.
Nearly two years since the ATO released their draft ruling LCR 2019/D3 to clarify how the 1 July 2018 amendments were to be applied in respect of NALE, we see the release of the final version of the ruling, as LCR 2020/2. The final version of the ruling was expected to address issues raised in many submissions by industry on the draft ruling and whilst it has addressed these issues, not all will be satisfied with the ATO’s responses. In particular, the ATO’s response to the issue of whether there is a nexus between expenditure that is general in nature and all of the fund’s income is not the outcome that industry has welcomed.
Treasury Laws Amendment (2021 Measures No.6) Bill 2021 was introduced into the lower house on 11 August 2021. Schedule 3 to the Bill amends the 1997 Tax Act to remove the requirement for SMSFs and Small APRA Funds to obtain an actuarial certificate when calculating exempt current pension income (ECPI), where all members of the fund are fully in retirement phase for all of the income year.
The Government committed in the 2018-19 Budget to introducing a retirement income covenant for superannuation trustees and consulted on the covenant in June 2018. Treasury released a position paper on 19 July 2021 that reflects the feedback from that consultation process and presents the Government’s refined policy, with the aim of guiding trustees ahead of the covenant being legislated and taking effect from 1 July 2022.
A welcomed announcement out of this year’s budget was the proposed measure to allow those with certain legacy pensions to effectively cease them during a two-year period, which is expected to commence on 1 July 2022. Whilst the measure provides an escape route for those with these pensions which are generally non-commutable, there may be some traps along the way, as well as some being left behind. Let’s consider how this measure may be implemented and what traps could be encountered along the way.