POWERED BY MOMENTUM MEDIA
Work test and spouse contribution changes to increase retirement savings
The age increase for the work test from 65 to 67 and the age limit for spouse contributions from 69 to 74 needs to be incorporated into end-of-year planning as the changes will take effect on 1 July, 2020, according to the SMSF Association.
The association’s chief executive, John Maroney, said it was imperative that self-managed superannuation fund (SMSF) specialist advisers and trustees were alert to these amendments and needed to incorporate them into their end-of-year planning.
“These changes, which apply to contributions made from the 2020-21 financial year, are extremely timely considering the market and economic fallout from the COVID-19 pandemic,” Maroney said.
“The amendments will give more flexibility to older individuals wanting to increase their contributions to superannuation to build adequate retirement savings.
“The work test has long been an area of regulatory burden and increasing the age at which it applies will reduce red tape and compliance obligations for these individuals.”
The SMSF Association noted that increasing the age limit for accessing the bring forward non-concessional contributions cap for people aged 65 and 66 was expected to be passed before 1 July when Parliament sat this month.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
