Date of article: 23 May 2018
Last updated: 23 May 2018
Measures affecting or relating to superannuation announced in the Budget 2018-19.
Work test exemption for recent retirees
Currently, the work test restrict people aged 65-74 from making voluntary superannuation contributions unless they are gainfully employed (including self-employed) for a minimum of 40 hours in any 30 day consecutive period in the financial year.
From 1 July 2019, people aged 65-74 with superannuation balance below $300,000 will be exempt from the work test for voluntary superannuation contributions, in the first year that they do not meet the work test requirements.
Inactive small superannuation accounts
From 1 July 2019, all inactive superannuation accounts with balance below $6,000 are to be transferred to the ATO. The ATO will expand its data matching processes to proactively reunite these inactive superannuation accounts with the member’s active account.
Opt-in insurance for small or inactive accounts, or young people
Life insurance within superannuation will be offered on an opt-in basis for:
Changes will take effect from 1 July 2019, with a period of time given to those affected to decide whether they will opt-in to their existing cover.
Increasing the maximum number of members in SMSF
The maximum number of members permitted in a SMSF will increase from 4 to 6 from 1 July 2019.
Three-year audit cycle for some SMSF
The Government will change the annual audit requirement to a three-yearly requirement for SMSF with a history of compliance from 1 July 2019. Those SMSFs that have a history of three consecutive years of clear audit reports and have lodged the fund’s annual returns on time are eligible.
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