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.”

Advertisement
Advertisement

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.

Work test changes receive industry body approval
John Maroney
ifa logo
Adrian Flores

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

from the web

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.