2016 Budget changes – more changes are in place but beware the backflips12 April 2017 Topics: Superannuation, Tax and revenue
The Government has completed some more of the 2016 Budget changes with the finalisation of Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017.
These implement some previously announced changes, but with some big backflips from the draft Regulations released in January (please click here for an article on the original draft regulations).
The Regulations largely make administrative changes that reflect the 2016 Budget reforms.
However, two important measures in the draft regulations have been removed. This will have potentially significant impacts, particularly for SMSFs.
The Regulations no longer:
- exempt funds from the need to have actuarial certificates after 1 July 2017 – this means actuarial certificates will still be required for superannuation funds paying pensions where they also have accumulation accounts
- allow market linked pensions to be commuted if there may be an excess transfer balance cap issue – this means that market linked pensions will still provide an excess transfer balance cap issue if there are also account base pensions.
Measures previously announced that are now law include:
- permitting superannuation death benefits to be rolled over in many situations
- removing the obligation on the trustee of the fund to refund contributions over the caps (fund-capped contribution rules), as these contributions can now be refunded under the contribution cap rules
- allowing defined benefit funds to give a notice to members that they will not allow members to claim personal deductible contributions after the removal of the 10% test
- removing the ability to elect for a lump sum to count towards your minimum pension payment.
If you have any questions, please contact a member of our team.