Exemption from the Work Test To Make Personal Contributions in the First Ineligible Year
From 1 July 2019, the Government plans to provide an exemption from the Work Test for people aged 65 to 74 for voluntary contributions to superannuation where there superannuation balance is below $300,000 but only for the first year that they do not meet the requirements. Currently, people aged 65 to 74 need to meet the work test of working 40 hours in a 30 day period to be able to make personal contributions to superannuation.
3 Year Audit Cycle for SMSFs with a Good Record
The Government intends to change the annual audit requirement of SMSFs with a good history of record keeping, compliance and lodgements from 1 July 2019 to a three-yearly requirement. SMSFs with 3 years of clear audit reports and on time lodgements will only be required to be audited every 3 years. This is a good change that will reduce costs in most SMSFS.
Increasing the Maximum Number of Members in an SMSF or Small APRA Fund to 6
From 1 July 2019, the Government intends to increase the maximum number of allowable members in an SMSF or small APRA fund from 4 to 6 to allow larger families more flexibility in consolidating and managing their superannuation benefits.
Preventing Inadvertent Breaches of Concessional Contribution Cap by Specific Employees
From 1 July 2018, the Government intends to allow individuals with taxable income above $263,157 and who have multiple employers to nominate that their wages from certain employers are not subject to the super guarantee requirements. This will help employees keep their concessional contributions from exceeding their concessional contribution cap and being taxed at their marginal rates of tax. The employee may have the possibility of negotiating to receive the forgone super as wages.