The Federal Government has announced certain superannuation measures, including providing updates in relation to previously announced measures and expanding eligibility for downsizer contributions.
Unlegislated measures
The Labor Government has reviewed and will not proceed with the following superannuation measures announced by the former Coalition Government in the 2018–19 Budget:
- Changing the annual audit requirement for certain self-managed superannuation funds (SMSFs). This measure sought to change the annual audit requirement to a three-yearly for SMSFs with a history of good record-keeping and compliance. While the measure had strong support in some circles, the proposal was never legislated by the previous government.
- Introducing a requirement for retirement income product providers to report standardised metrics in product disclosure statements. The former government proposed to introduce a simplified disclosure regime to facilitate the development of a comprehensive income product for retirement framework. Again, the former government did not legislate this measure.
The Federal Government also confirmed that the changes to the SMSF residency rules (as announced in the 2021-22 Budget) will be delayed until the income year commencing on or after the date of Royal Assent of the enabling legislation (rather than 1 July 2022 as previously announced by the former government). These measures propose to relax the SMSF residency rules by extending the central management and control test safe harbour, as well as removing the active member test for certain funds. The enabling legislation has not yet been introduced into Parliament.
Expanding eligibility for downsizer contributions
The Government will allow more people to make downsizer contributions to their superannuation, by reducing the minimum eligibility age from 60 to 55 years of age. The measure will have effect from the start of the first quarter after Royal Assent of the enabling legislation.
The downsizer contribution allows people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their main residence. Both members of a couple can contribute and contributions do not count towards non-concessional contribution caps. Either the individual or their spouse must have owned the home for 10 years.
This measure provides greater flexibility to contribute to superannuation and aims to encourage older Australians to downsize sooner to a home that better suits their needs.
The Federal Government has not announced any measures specific to the non-superannuation funds sector, but has flagged its position on certain investment structures.
Future of managed investment schemes and limited partnership collective investment vehicles
There are no key announcements by the Government which target the funds sector (outside of superannuation).
However, the Government has confirmed that it has reviewed - and will not proceed - with the legacy 2016–17 Budget measure that proposed introducing a new tax and regulatory framework for limited partnership collective investment vehicles. The Government has also announced that it will provide $2.7 million in 2022–23 for Treasury to support reviews of the Reserve Bank of Australia and the regulatory framework for managed investment schemes.
