There’s not a lot to report on for superannuation in the 2019 Federal budget [cue relief]. However, there are a couple of measures that, if passed, will grant some benefit to superannuation members.
The first is to align the work test with the eligibility age for the age pension. This would mean, when the eligibility age for the age pension increases to 67 from 1 July 2023, that the work test also won’t kick in until members have turned 67. This would allow members aged 65 and 66 to make personal contributions without being required to satisfy the work test. Members 65 and 66 will also be eligible to trigger their 3 year bring forward non-concessional contributions in those years.
The second measure will introduce a more streamlined approach for the some of the administrative requirements for calculating exempt current pension income (ECPI). This will include the removal of the need to obtain an actuarial certificate if the super fund is 100% in retirement phase but forced to use the proportionate method (eg if the super fund has small fund disregarded assets). This measure is proposed to apply from 1 July 2020.
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