Budget measures for SMSFs delayed till 2022
With the final sitting day of Parliament over, the SMSF industry will have to wait till at least next year for the raft of superannuation measures announced in the budget to be passed as law.
In late October, the government introduced Treasury Laws Amendment (Enhancing superannuation outcomes for Australians and helping Australian businesses invest) Bill 2021 into Parliament to implement the various changes to superannuation it announced in the federal budget.
The bill, if passed as law, will remove the $450 per month income threshold for SG, increase the maximum amount of voluntary contributions that can be released under the First Home Super Saver Scheme to $50,000, reduce the eligibility age for downsizer from 65 to 60 years of age and repeal the work test for individuals 67-75 years of age for non-concessional contributions (including bring-forward rule) or salary sacrifice contributions.
The bill also gives SMSF trustees the choice to be able to use their preferred method of calculating exempt current pension income where the fund is fully in the retirement phase for part of the income year but not for the entire income year.
With the last sitting day of Parliament now over, SMSF professionals will have to wait till at least next year for the measures to be passed.
Based on the parliamentary sitting calendar for 2022, Smarter SMSF chief executive Aaron Dunn said that even if the government calls an election as late as May, there may only be around 10 sitting days between now and election time.
“We’d like to see this go through as quickly as it possibly can as it would give some certainty around these measures,” said Mr Dunn.
Mr Dunn also raised concerns about the two budget measures that were left off the bill, which relate to legacy pensions and changes to the residency rules for SMSFs.
“The further we go on, the more concerned I get to see whether they will actually take effect from 1 July 2022, or whether they just amount to election promises now.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.