Changes to Superannuation in August 2015 included legislation to reduce the ‘harshness’ of the Superannuation Guarantee Charge, increase the lost superannuation threshold, change the governance of public offer superannuation funds and several ATO decisions.
In other news:
- Assistant Treasurer Josh Frydenberg suggested the Government wouldn’t ban SMSF borrowing
- He also released a consultation paper proposing industry levies to fund ASIC, including on SMSF auditors, large super funds and SMSF corporate trustees
- ASIC has only received 160 applications for limited AFSLs
- The Senate is conducting an inquiry into the economic security of women in retirement
- ASFA said the cost of a comfortable retirement has increased by $130,000
- AIST said it was a myth that $1 million was required for a comfortable retirement
- The ATO issued guidance around the requirement for an SMSF to hold assets in order to apply for an ABN
- The ATO published a form for contributions reserving strategies
- The Federal Penalty Unit, used to calculate a range of superannuation and SMSF fines and penalties, increased from $170 to $180
The ATO also issued several superannuation related Interpretative Decisions in August:
- ATO ID 2015/21 ECT: concessional contributions – reserve
- ATO ID 2015/22 Superannuation, ECT: concessional contributions – allocation from ‘pension reserve account’ supporting ‘complying lifetime pension
- ATO ID 2015/23 Superannuation: Member’s benefits in a regulated superannuation fund must be ‘cashed’ upon death by being paid – mere journal entries insufficient
Passed changes to superannuation
Pending changes to superannuation
Increases to the threshold at which lost superannuation is transferred to the ATO
The Government has introduced to the Parliament the Tax and Superannuation Laws Amendment (2015 Measures No. 4) Bill 2015, which would increase the threshold at which lost superannuation is transferred to the ATO from the current $2,000 to $4,000, and later to $6,000. The Government said it would implement this measure, announced by the last Labor government, in November 2013.
Changes to Superannuation Guarantee Charge
The Government in August released draft legislation of changes to the operation of the Superannuation Guarantee Charge (SGC), including changing the calculation from salary and wages to Ordinary Time Earnings, and winding back the severity of the interest and penalties.
Super fund governance
The draft legislation for changes to the governance of public-offer superannuation funds has yet to be submitted to Parliament. The Government said some changes would be made to the legislation, following from the consultation process.
Look through tax treatment for SMSF LRBAs
The Tax and Superannuation Laws Amendment (2015 Measures No. 2) Bill 2015, including look-through tax treatment of SMSF LRBAs, is currently before the Senate.
MySuper internal transfer tax relief
Legislation for the announced extension of tax relief for MySuper transfers to internal transfers is pending.
The Parliament is next scheduled to sit on the 7th of September.
We also have the following pages for keeping track of changes to superannuation:
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