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Post-Election Super Summary

August 2019

With the election over and no large changes in government to contend with for now, here is a look at which proposed superannuation changes have been scrapped and which still apply.

  • Franking Credit refunds - here to stay! For now at least – the proposed removal of these was a Labor policy.
  • Non concessional contribution caps – play on. Labor had proposed to reduce this from $100,000 down to $75,000, they’re now expected to remain as they are.
  • Personal deductible contributions – here to stay! Labor sought to limit this to self-employed individuals only.
  • Limited Recourse Borrowing Arrangements for Self-Managed Super Funds – to continue. Labor had proposed to ban these which is now off the cards, however the big 4 banks have all pulled out of this market and so the options for SMSF borrowers have reduced.
  • Increasing the number of SMSF members from 4 to 6 – unsure. This was a Liberal proposal that was removed from a somewhat unrelated bill. No word yet whether it will be reintroduced.
  • Introduction of 3-year audit cycle for SMSFs – all quiet. This was a Liberal proposal with the intention of saving money for SMSF trustees, however the industry response indicated this would not be the result and there has been no mention of it recently.
  • Opt-out of Super Guarantee for employees with multiple employers – this was passed by the House of Representatives but not yet the Senate.
  • Opt-in insurance cover – now law. Insurance cover will be stopped on super accounts that are considered inactive unless members specifically request to retain the insurance.
  • “Small” inactive super balances transferred to the ATO – now law. For account balances of less than $6,000 and inactive for more than 16 months.
  • Superannuation Guarantee Opt-out for those with multiple employers – coming soon. The Bill was reintroduced to Parliament in July.

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Topics: Superannuation

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