Prior to 1 July 2020, mandated employer contributions such as Superannuation Guarantee paid into a superannuation account were accepted although, non-concessional or non-mandated contributions made by those aged 65-75 were subject to the “work test”. Effective from 1 July 2020, the Government has abolished the “work-test” for those aged 65 & 66 who make non-mandated contributions (e.g. voluntary contributions) to their superannuation account.
This means a contributor between the ages of 65 & 67 is no longer required to work at least 40 hours within a 30 consecutive day period at least once in that Financial Year before their superannuation fund can accept certain contributions, including non-concessional contributions. In addition, the three year bring forward rule for non-concessional contributions has been extended for those up to 66 years of age.
As the trend of Australians looking to retire later in life continues to grow, this announcement aims to support those wishing to boost their retirement funds ahead of the Age Pension eligibility increase in 2023 to 67 years of age.
Additionally, as part of further changes to Self-Managed Super Funds, the Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 was introduced into Parliament on 2 September 2020. The Bill proposes to amend the SIS Act and taxation laws to increase the maximum number of allowable members in an SMSF from four to six.
As is currently the case, an SMSF with one or two Directors or Individual Trustees must have its accounts and statements signed by all Directors or Trustees. For all other SMSFs (that is, those with between three and six directors or trustees), the accounts and statements of the SMSF only need to be signed by at least half of the directors or individual trustees. This can be useful if some trustees are not available at the time of signing.
For More Information
For more information on these SMSF changes, or for assistance in this matter, please contact your Archer Gowland Redshaw adviser on (07) 3002 2699 or (07) 3221 4004.