Budget 2019: Superannuation
With each Federal Budget comes changes to how super works, so we've summarised the key changes below.
Superannuation 'work test' watered down & age limit for spouse contributions increased
Date of effect: 1 July 2020
As previously announced, from 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions (concessional and non-concessional) without meeting the Work Test.
Currently, voluntary contributions can only be made if the individual has worked a minimum of 40 hours over a 30 day period (Work Test). Those aged 65 and 66 will also be able to make up to three years of non-concessional contributions under the bring-forward rule.
In addition, the age limit for spouse contributions will be increased from 69 to 74 years. Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf.
Permanent tax relief for merging super funds
The current tax relief for merging superannuation funds is due to expire on 1 July 2020. The Government will extend this measure permanently.
The tax relief, which enables superannuation funds to transfer revenue and capital losses to a new merged fund, and to defer taxation consequences on gains and losses from revenue and capital assets, has been available since December 2008.
Opt-in insurance delay
The Government will delay until 1 October 2019, the start date for reforms that ensure insurance within superannuation is only offered on an opt-in basis for accounts with balances of less than $6,000 and new accounts belonging to members under the age of 25 years.
Defence Force members can stay in super fund after discharge
Eligibility to Australian Defence Force Superannuation Scheme (ADF Super) membership will be extended to allow ADF Super members to choose to remain contributory members after discharge.
More from the 2019 Budget
Of course, until an election is won, we can't say which measures will come into play, however if you have concerns or questions about how these measures may impact you or your business, please contact us in 02 9957 4033.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.