After a couple of quiet years in superannuation legislative reform, 2020 is shaping up to be a pivotal year:
Federal Government’s Retirement Income Review
The Federal Government’s Retirement Income Review will get underway, which promises to determine the facts about Australia’s retirement system, which will consider the sustainability and purpose of the aged pension and superannuation system.
The looming deadlines for FASEA will approach for advisers, and we should see a significant increase in certainty around what this new frontier will mean for advisers.
Super guarantee – salary sacrifice integrity
From 1 January 2020, if an employee has salary sacrificed to super, the sacrificed amount cannot count towards the employer’s compulsory super contribution obligations.
Limiting vacant land deductions
In the 2018/19 federal budget, the government announced that it would limit deductions for expenses associated with holding vacant land. These restrictions remove tax deductions for vacant land from 1 July 2019 for individuals, trusts which are not widely held and to SMSFs. However, the restrictions do not apply to companies, managed investment trusts, public unit trusts or superannuation funds other than SMSFs.
Redundancy and early retirement scheme
To link it to changes in the Centrelink Age Pension age, the age at which someone can access the tax-free amount for a genuine redundancy and early retirement scheme payment has been increased from age 65 to 67.
High Income Earners and Super Guarantee
From 1 January 2020, eligible high income earners with more than one employer may elect to nominate which wages/employer are excluded from the Super guarantee – this will help avoid excess concessional contributions tax.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page.