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Work test changes receive industry body approval
New draft legislation put forward by the government to change work test laws enabling Australians over the age of 65 to make further voluntary contributions to their super has received the full support of a major industry body.
Under the draft bill, the Superannuation Industry (Supervision) Regulations 1994 would be amended to allow people aged 65 and 66 to make voluntary contributions without meeting the work test, as well as allow people aged 70 to 74 to receive spouse contributions by increasing the maximum age from 69 to 74 years.
Further, the draft bill would amend the Income Tax Assessment Act 1997 to extend access to the bring‑forward arrangements to people aged 65 and 66.
In response, SMSF Association chief executive John Maroney welcomed the work test changes, saying they recognise the need for Australians to have greater flexibility as they transition to retirement.
“Work patterns are constantly changing, so it’s essential the legislation underpinning superannuation changes, too, to help ensure Australians can accumulate sufficient savings to have a secure and dignified retirement,” Mr Maroney said.
“It has long been the association’s policy position to support greater flexibility for making contributions to superannuation. Although our preference is to remove the work test altogether, this measure is a step in the right direction, and the government is to be commended for implementing this election promise.”
The bill is under an ongoing consultation which will close on 3 April 2020. Following consultation, the changes are expected to take effect from 1 July 2020.
Adrian Flores
Adrian Flores is the deputy editor of SMSF Adviser. Before that, he was the features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.
You can email Adrian at [email protected].
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