Despite much speculation, the Government did not make any unexpected changes to super for the 2020-21 financial year. Previously announced COVID-19 measures in relation to early access to super and pension drawdown relief will continue.
The main reform announcements in the Budget were designed to reduce the number of duplicate employee accounts as a result of changes in employment and to provide information about underperforming funds.
There is a bit to unpack, so let’s get started…
SMSFs(if you don’t know what this is then you don’t have one, so skip this section) |
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This year’s Federal Budget was unexpected good news for anyone with an SMSF, as there were no tax changes to income nor contributions that many expected. The Budget did confirm that the increase in the maximum number of members of SMSFs from four to six members will go ahead. That’s it… so let’s move on. |
Your Future, Your Super Reforms |
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The Government will implement reforms to improve outcomes for superannuation fund members. The reforms will reduce the number of duplicate accounts held by employees as a result of changes in employment and prevent new members joining underperforming funds. From 1 July 2021, the Your Future, Your Super package will improve the superannuation system by:
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Reforms to MySuper |
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So, the ATO will develop systems so that new employees are able to select superannuation products which would:
Existing Superannuation
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No Changes To… |
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There was no or little change in some of the previously announced superannuation measures. These included:
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In Conclusion |
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It will be interesting to see how these changes are implemented for new employees and anyone who finds themselves a member of an underperforming fund.
One thing is for certain, SMSFs members are considered engaged and interested. This includes:
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