The changes to superannuation in May 2015 were dominated by the 2015 Federal Budget. Though changes in the budget were modest there is an emerging policy battle over super, with the Liberal party extending the promise of no changes, while the Labor party revisits policies floated while they were in government.
The 2015 Budget made only a few changes to superannuation:
- the prior-announced extension from 12 months to 24 months to the period for early access to super under Terminal Medical Condition.
- full cost recovery of regulation of the super sector
- cutting red tape – the details of which have yet to emerge
- increasing the Commonwealth Penalty Rate – which increases the amount of a number of super related penalties.
For more detail see our article on the budget.
In other news:
- The Prime Minister appears to have ruled out any future changes to superannuation.
- Treasurer Joe Hockey ruled out a review of retirement income, then suggested such a review would be needed in the future.
- Shadow Treasurer Chris Bowen revealed, in his Budget Reply Address, that the Labor party is considering more changes to superannuation.
- Labor would increase super guarantee rate “when prudent.”
- There is now more than $2 trillion in superannuation, APRA statistics revealed.
- Details have started to emerge of the extent of the ATO Statutory Remedial Power to alter the operation of tax and superannuation laws.
- The ATO warned that SMSFs with ‘status not determined’ were not being accepted for some transactions.
- The ATO issued a taxpayer alert on SMSF dividend stripping: TA 2015/1.
- APRA superannuation levies are set to decrease in 2015/16.
Passed changes to superannuation
No superannuation related bills passed the Parliament in May 2015.
Pending changes to superannuation
Small business superannuation clearing house and super choice forms
The changes to the superannuation standard choice form requirements for employers, particularly relating to temporary resident employees and where super funds have merged, have been submitted to the Parliament, in the Superannuation Guarantee (Administration) Amendment Bill 2015.
The announced changes to the Small Business Superannuation Clearing House, meant to apply from 1 July 2015, are still pending.
Boosting Superannuation for Women
The Greens’ Sex Discrimination Amendment (Boosting Superannuation for Women) Bill 2014 would allow employers to pay women more in superannuation without contravening the anti-discrimination laws.
It appears that this bill will go nowhere. The Age is quoting a letter from Attorney General George Brandis saying that as paying women more than men is not prohibited under current law “the government considers that your bill is unnecessary to achieve the outcome you propose and accordingly we do not propose to support your bill.”
Increasing lost superannuation threshold
It is unclear if the Government intends to proceed with previously announced increase to the threshold, to $4,000 and later to $6,000, for lost superannuation to be transferred to the ATO. This was meant to go before the Parliament in the Autumn session, but would likely clash with current rhetoric.
We also have the following pages for keeping track of changes to superannuation:
Want to be kept up-to-date with SMSF and Superannuation changes, why not subscribe to our Newsletter?
This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.