More superannuation and SMSF news.


Status of current superannuation Bills

Last updated: 19/06/2020.


Passed superannuation legislation

Superannuation-related legislation that has passed the Parliament.

Last updated: 19/06/2020


Current status of government superannuation policies

The status of government superannuation policies in development and implementation.

Currently before Parliament

Newly announced


Unknown


From the 2019/20 Budget

  • Streamlining ECPI
    • Announced in the 2019/20 Budget, this change is meant to apply from 1 July 2020, This would include allowing super funds in both accumulation and retirement phases to be able to choose the method of calculating ECPI, and removing a redundant requirement for super funds fully in retirement phase and using the proportionate ECPI method to obtain an actuarial certificate. Draft legislation has yet to be released.
    • On 30 June 2020, the Government announced the start date would be pushed back from 1 July 2020 to 1 July 2021. Legislation still needs to be passed through Parliament for this change.
  • Raising Work Test age
    • It is proposed that, from 1 July 2020, people aged 65 or 66 will be able to make voluntary super contributions without having to meet the ‘work test’. Announced as part of the 2019/20 Budget, this has yet to be legislated.
  • Raising age limit for spouse contributions
    • The Government has proposed increasing the age limit for spouse contributions would be increased from 69 to 74. This has yet to be legislated.
  • Superannuation Consumer Advocate

Delayed


Recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry

On 8 May 2020 the Government announced a 6 month “deferral” of the implementation of its responses to the Royal Commission, due to COVID-19.

  • 3.1 – No other role or office for trustees of super funds. The Government said it would “address the risks” of dual regulated entities with such a prohibition. Legislation to be introduced by 30 June 2020.
  • 3.2 – Ban on deducting advice fees from MySuper accounts. Legislation to be introduced by 30 June 2020.
  • 3.3 – Limits on deducting advice fees from Choice product accounts. Government agreed, “consistent” with requirements around ongoing fee arrangements. Legislation to be introduced by 30 June 2020.
  • 3.4 – Prohibition on ‘hawking’ of superannuation products. Legislation to be introduced by 30 June 2020.
  • 3.5 – A person should have only one default account. The Government agreed with the recommendation, but there is no details on the method or any timeframe for it to be implemented. The Government says the recommendation will be “considered in the context” of related recommendations from the Productivity Commission – which the Government has had since late 2018 and to which it has yet to respond.
  • 3.8 – Adjustment to roles of APRA and ASIC in respect of superannuation. Legislation to be introduced by 30 June 2020.
  • 3.9 – Extend Banking Executive Accountability Regime (BEAR) to large super fund trustees (RSEs). Legislation to be introduced by 31 December 2020.

The above list is not exhaustive and based on publicly available information.

Last updated 11/06/2020.