2018-19 Federal Budget Measures- SMSF
The major changes in regards to SMSFs are listed as below:
- Preventing inadvertent concessional contribution cap breaches: from 1 July 2018, the Government will allow individuals whose income exceeds $263,157 and who have multiple employers to nominate that their wages from certain employers are not subject to the superannuation guarantee (SG). This measure will allow eligible individuals to avoid unintentionally breaching the $25,000 annual concessional contributions cap as a result of multiple compulsory SG contributions. Breaching the cap otherwise results in these individuals being liable to pay excess contributions tax, as well as a shortfall interest charge. Source: Budget Paper No. 2 page 40.
- Work test exemption for recent retirees: from 1 July 2019 — the Government will introduce an exemption from the work test for voluntary contributions to superannuation, for people aged 65-74 with superannuation balances below $300,000, in the first year that they do not meet the work test requirements. The current work test for those aged 65-74 is to work at least 40 house in consecutive 30 days in particular financial year. The exemption will give those who recently retired more options to make contributions to their SMSFs.
- Increasing the maximum number of allowable members in SMSFs: from 1 July 2019 — the Government will increase the maximum number of allowable members in new and existing self managed superannuation funds (SMSFs) and small APRA funds from four to six.
- Three-yearly audit cycle for some SMSFs: from 1 July 2019 — the Government will change the annual audit requirement to a three-yearly requirement for self managed superannuation funds (SMSFs) with a history of good record-keeping and compliance.
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