The Federal Government has announced revised a revised start date of 1 July 2021, deferring the commencement on two proposed actuarial red tape measures that were announced in last year’s Federal Budget. This revision are a result of the Government’s re-prioritisation of resources and the shortened parliamentary sitting period in 2020 due to the COVID-19 crisis.
These two measures were:
- to provide a ‘choice’ for the fund in determining which method of ECPI could be applied to determine how a fund’s tax exemption would apply for the financial year – that is, applying the current approach to ECPI where a fund may have both segregated and unsegregated periods during a financial year, or reverting back to the ‘old method’ where the actuarial certificate will apply to the entire financial year to determine a percentage based upon the income earned by the fund.
- to amend the disregarded small fund assets rules set out in section 295-387 of the ITAA 1997 to avoid of fund requiring an actuarial certificate where a 100% tax exemption applies.
It should also be noted that the announcement by the Assistant Treasurerm Michael Sukkar reaffirmed the Government’s committed to increasing the number of members in a SMSF to 6, whereby the start date will now occur from the date of Royal Assent should this successfully make its way through both houses (noting is has failed once before in the lead up to the last federal election).
You can read the announcement about the revised super and tax measures here.