Superannuation changes in 2016

Superannuation changes in 2016 have been dominated by the range of measures announced in the 2016/17 Federal Budget – though several of these changes to superannuation have been modified or abandoned. Below is a list of many of the changes to superannuation in 2016 and their current status.

In brief, many of the Government’s changes to superannuation announced in the 2016 Budget, some of which have subsequently changed, have passed the Parliament: Fair and Sustainable superannuation package passes Parliament.

Super fund choice and disclosure Bills put before Parliament

Super fund choice, superannuation fund transparency, product dashboards, portfolio holding disclosure, ATO remedial power, Parliament, Superannuation Legislation Amendment (Choice of Fund) Bill 2016, Superannuation Legislation Amendment (Transparency Measures) Bill 2016, Tax and Superannuation Laws Amendment (2016 Measures No. 2) Bill 2016The Government has introduced three superannuation-related Bills to the House of Representatives just before the Parliament rises for the long break ahead of the Budget. These Bills include expanding choice of super fund, changes to the disclosure requirements on large super funds and the Statutory Remedial Power for the ATO.

Expanding choice of super fund

The Superannuation Legislation Amendment (Choice of Fund) Bill 2016 expands choice of super fund to more employees.

“The Turnbull Government recognises it doesn’t make sense to force employees to save money in superannuation but then leave key decisions about how it is managed outside their control,” said the Assistant Treasurer Kelly O’Dwyer. Read more...

Refunding excess non-concessional contributions bill passed

Refunding excess non-concessional contributions, Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014The Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014 has passed the Parliament, changing the treatment of excess non-concessional contributions.

After receiving assent the bill will create a system for refunding excess non-concessional contributions made in the 2013/14 or later financial years, along with 85% of associated earnings. The grossed up (100%) associated earnings are included in the individual’s assessable income for the year in which the contribution was made, with a 15% non-refundable tax offset.