As we close what has been a year one like no other, we’ve seen a number of key measures finalised and become law throughout 2020. However, we’ve equally seen a range of announced measures that remain outstanding as we move towards 2021.
The following table below provides a legislative stock take of the items impacting SMSFs that remain outstanding at the end of 2020:
| Item | Status |
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Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 introduced into Parliament on 13 May 2020 – at the end of the year, remained before the Senate. Note that once passed, this law change will be effective from 1 July 2020.
The regulations to allow contributions to be made for a 65 & 66 year old without needing to meet a work test became operative from 1 July 2020. |
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The Government introduced Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 on 2 September 2020. This Bill was referred to Senate Economics Legislation Committee, which ultimately responded in favour.
The Bill remains before the Senate, with an earliest possible start date of these laws now 1 April 2021. |
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This Budget measure had its start date revised from 1 July 2020 to 1 July 2021 (see announcement below from Assistant Treasurer).
The ‘devil will be in the detail’ when it comes to how the Government intends of providing ‘choice’ in a fund determining ECPI for an income year. Allowing an exemption for disregarded small fund assets (DSFA) will be a welcome addition where a fund has 100% tax exemption. |
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Having seen the current temporary measures for electronic signing and virtual meetings being extensively utilised throughout the COVID-19 pandemic period, Treasury did release an Exposure Draft Bill issued to make these temporary measure more permanent.
https://treasury.gov.au/consultation/c2020-119106 With the temporary measures under the Corporations Act in place until 21 March 2021, it will be great to see these changes become a permanent feature moving forward. |
Fortunately, we’ve seen the proposed 45 day financial reporting timeframe measure recently scrapped, bring plenty of relief from within the SMSF industry. See our previous post, common sense prevails with SMSF financial reporting for more details on this scrapped proposal by Treasury.
It should also be noted that at 31 December 2020, the early release payments on compassionate grounds due to COVID-19 will conclude, following the Government extending this timeframe previously via Treasury Laws Amendment (Release of Superannuation on Compassionate Grounds) Regulations (No. 3).
As we move towards 2021, these measure once finalised will create some interesting strategy considerations and opportunities for SMSF members.
View our page for more information on SMSF Trust Deeds and SMSF Establishments.
