What the October 2022 Federal Budget Means for Your SMSF?
There are no new measures for superannuation in this budget.
The following has been confirmed:
- Downsizer contributions : The Government has confirmed the reduction in the eligibility age from 60 to 55 for Australians wishing to make downsizer contributions. Legislation to give effect to this measure is currently before the Senate.
- SMSF audits every three year: The Government will not proceed with the former government’s proposal to allow a three-yearly audit cycle for SMSFs with a good compliance history.
- SMSF residency changes: The Government has proposed to extend the central management and control (CM&C) test safe harbor from two to five years, and remove the active member test, will now start from the income year commencing on or after assent to the enabling legislation (previously 1 July 2022). This has not become law yet. The current legislation is s.295-95 ITAA 1997.
- Penalty unit increase: The Government will increase the amount of the Commonwealth penalty unit from $222 to $275 from 1 January 2023. This will apply to all late lodgments for SMSF tax returns and BASs. The amount will continue to be indexed every three years in line with the CPI as per the pre-existing schedule, with the next indexation occurring on 1 July 2023.