The Rubiix 2018-9 Budget Report: Superannuation

SMSF member limit to increase from 4 to 6 – law to be amended
The Budget confirmed that the maximum number of allowable members in new and existing self-managed superannuation funds (SMSFs) and small APRA funds will be expanded from 4 to 6 members from 1 July 2019.

Personal superannuation contributions – improving notice of intention to deduct
The Government announced measures aimed at improving the integrity of the notice of intent (NOI) processes for claiming deductions for personal superannuation contribution. An additional $3.1 million of funding will be provided to the ATO to develop a new compliance model for deducting personal super contributions, and to undertake additional compliance and debt collection activities.

Superannuation work test exemption for contributions by recent retirees
The Government will introduce an exemption from the work test for voluntary superannuation contributions by individuals aged 65-74 with superannuation balances below $300,000 in the first year that they do not meet the work test requirements.

Super Guarantee opt-out for high-income employees who breach concessional cap
The Government will allow individuals whose income exceeds $263,157 and have multiple employers to
nominate that their wages from certain employers are not subject to the superannuation guarantee (SG) from 1 July 2018.

SMSF audit cycle of 3 years for funds with good compliance history
The annual audit requirement for self-managed superannuation funds (SMSFs) will be extend to a 3-yearly cycle for funds with a history of good record-keeping and compliance.

Superannuation insurance opt-in rule for younger and low-balance members
The Government will change the insurance arrangements for certain cohorts of superannuation members from 1 July 2019. Under the proposed changes, insurance within superannuation will move from a default framework to be offered on an opt-in basis for:

  • members with low balances of less than $6,000;
  • members under the age of 25 years; and
  • members with inactive accounts that have not received a contribution in 13 months.

If you have any queries or would like to discuss any of these points further and how they may affect you, please contact our office on 03 9603 0066.

Exclusive New Client Offer

Contact our team today to get a FREE 30-minute meeting with one of our expert business accountants, including an ADDITIONAL free Financial Safety Checklist to help you on your journey to financial freedom.