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The unexpected win - Coalition super policies to be actioned
With the Coalition returning to the Treasury Benches, the Morrison Government will press ahead with its proposed superannuation changes which include:
- the increase from 4 to 6 in the maximum number of members for a self managed superannuation fund – currently SMSFs can have only 4 members at any time
- the relaxation of the work test rules relating to contributions so that individuals aged 65 and 66 can make voluntary superannuation contributions – whether or not they satisfy the work test. Currently the work test (40 hours of paid remuneration within 30 consecutive days) must be satisfied before voluntary contributions can be made by or on behalf of an individual
Note: this measure is in addition to the currently implemented measure of “last drinks” contributions; where voluntary contributions can be made if the individual has ceased to satisfy the work test and their total superannuation balance is less than $300,000.
- the increase in the maximum age to receive spouse contributions from the current age 69 to 74 (currently the spouse must be under age 70 to receive spouse contributions)
- the extension of the "bring forward" rule for non-concessional contributions to individuals aged 65 or 66 (currently the "bring forward" rule can only apply if the individual is under age 65)
- the removal of the requirement to obtain an actuarial certificate where a fund only has account-based pension liabilities, but a member has an interest in another fund which causes the member to have a total superannuation balance in excess of $1.6m.
It seems that the Coalition is now in love with superannuation, especially self managed superannuation, given the boost it received in the polls due to Labor’s proposed removal of the Government’s "gift" of refundable excess franking credits.