HFB Super – End Of Financial Year Summary
HFB Super – End Of Financial Year Summary
Before the election, the Coalition did announce tweaks to the superannuation system that we anticipate will be implemented by the Government. Announcements include:
- Guaranteeing no new taxes on superannuation.
- Greater flexibility for retirement contributions.
- From 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions, both concessional and non-concessional, without meeting the work test. Previously, this was only available to individuals below 65.
- This also includes extending access to the bring-forward arrangements to individuals aged 65 and 66 which allows individuals to make three years’ worth of non-concessional contributions to their super in a single year.
- Increasing the age limit for individuals to receive spousal contributions from 69 to 74.
- Reducing red tape for superannuation funds — exempt current pension income (ECPI) changes.
- Retaining limited recourse borrowing arrangements (LRBAs).
- Increasing the maximum number of SMSF members from four to six.
SuperStream
In addition, there is proposed regulation to extend SuperStream to SMSF Rollovers. Treasury released draft legislation which broadly extends the operation of SuperStream to cover SMSFs. Currently, SMSF’s only need to receive contributions through SuperStream – and only contributions that are paid by a non-related party employer.
If your SMSF does not receive arm’s length employer contributions, then the SMSF is not required to use SuperStream.
The proposed legislation will require all SMSFs to provide data/information to the ATO and conduct transfers/rollovers with other superannuation funds using SuperStream. The measure will enable the ATO to obtain the Electronic Service Adress (ESA) of all SMSFs and have more up to date data on each SMSFs electronic records.
The new measures will require a transferring SMSF to receive a rollover/transfer request electronically; verify and validate members details electronically; and rollover within three business days after rollover request received.
