Andrew from Vista Financial Posted November 25, 2021 Share Posted November 25, 2021 Legislation, namely the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021, has been introduced into Parliament to implement important superannuation changes announced in the 2021 Federal Budget, although we can’t act on these changes with certainty until they become law. Date of effect The Bill provides a commencement date of 1 July 2022 for the measures provided the legislation passes before this date. Regulations associated with the Superannuation and Tax Acts will also need to be amended. Removal of the work test The work test (or the requirement for the work test exemption) will be removed for individuals aged 67 and over making nonconcessional and salary sacrifice contributions. Current rules requiring contributions to be received by the fund no later than 28 days after the month in which the client turns 75 will still apply. Personal tax-deductible contributions are not included in this measure. Those over 67 wanting to claim a tax deduction for their personal contributions will still need to meet the work test (or work test exemption). This will be achieved by placing additional criteria on members when applying for the deduction (likely via the Notice of Intent form). Age to access bring forward rules increased The eligibility age to utilise the non-concessional bring-forward rule will increase from under 67 to under 75 on the 1 July in the year of contribution. This change will provide many opportunities for clients looking to boost their super, even after retirement. The Explanatory Memorandum does warn that it’s not the intention of the legislation to allow individuals approaching age 75 to bring forward non-concessional contributions for future years where they would have otherwise not been eligible to contribute based on their age. It is still unclear what mechanism will be used to support the Government ‘s intention as it is not specifically addressed in the draft legislation. Care will need to be taken when recommending non-concessional contributions to clients approaching 75. Standard eligibility criteria for non-concessional contributions still apply including the total super balance restrictions, whether the bring forward rules have been triggered in the previous two years and the non-concessional contribution caps. 1 Quote Link to comment Share on other sites More sharing options...
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