Budget 2018-19 - Budget measures - superannuation

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:

  • members with small balance of less than $6,000
  • members under the age of 25
  • members whose accounts have not received a contribution in 13 months and are inactive.

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.

Do you need help with your situation or if you wish to discuss the above, please contact us. Our contact details.

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