The Government’s proposal to increase the maximum number of members an SMSF can have, from four to six, may pass the Parliament this week.
Update: The Government will move to amend the Bill, stripping the SMSF member cap changes, in the House of Representatives.
The Bill, the Treasury Laws Amendment (2019 Measures No. 1) Bill 2019, is currently before the House. The Government announced the, potential, increase to the SMSF member cap in last year’s Budget.
Labor is opposed to increasing the SMSF member cap, and wants it removed from the Bill, leaving the passage of the measure up to the crossbench.
However time is also an issue. Only two Senate sitting days are scheduled this week, and the passage of the appropriation Bills is scheduled for Wednesday. The federal election is expected to be called later in the week.
This leaves much of the Government’s superannuation agenda stalled in the Senate heading into the election. Several of the Bills weren’t even debated in 2018, and one hasn’t been debated since 2016.
Status of current major superannuation Bills
- Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020
- Assent 22 March 2021
- Transfer superannuation held by Eligible Rollover Funds (ERFs) to the ATO, and close ERFs by 30 June 2021.
- Treasury Laws Amendment (Your Future, Your Super) Bill 2021
- Before the House of Representatives | Second reading moved 17/02/2021
- Various changes, including ‘stapling’ new employees to super funds, annual performance tests of MySuper products and other super products by APRA, and create best financial interests duty test.
- Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020
- Before the Senate | Second reading moved 02/09/2020 (introduced to Senate first)
- Increase maximum number of SMSF members from 4 to 6
- Treasury Laws Amendment (More Flexible Superannuation) Bill 2020
- Before the Senate | Second reading moved 31/08/2020
- Allow people aged 65 or 66 to use the three-year non-concessional contributions bring-forward rule
Last updated: 11/04/2021