Parliament passed four Bills on Monday night, a little too close for comfort for the Association of Superannuation Funds of Australia (ASFA).
ASFA CEO Pauline Vamos said, “With 1 July looming, the late passage of this Bill has left funds with just under a week to ensure they comply. Given that there are still many details which need to be determined in relation to implementation, we are calling on regulators to be pragmatic in their approach to enforcing compliance.”
The superannuation changes passed in Parliament on Monday night included four bills:
Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill
Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Bill
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
Tax and Superannuation Laws Amendment (Increased Concessional Contributions Caps and Other Measures) Bill
MLC believes the changes will help most Australians to retire with more money, and the reforms will provide a particular boost for employees, older people and lower income earners.
MLC head of technical services, Gemma Dale said that while the SG increase was only small, it “should ultimately help most people to grow their nest egg tax-effectively over time”.
People earning less than $37,000 per annum will have the 15% tax on their concessional super contributions refunded, up to a maximum of $500 per annum.
Dale said, “Prior to this change, there was little incentive for people who earned $37,000 a year or less to make pre-tax super contributions.”
The legislation also confirms the higher cap of $35,000 will be available to people aged 49 or over on 30 June 2014.
“That’s a great outcome for people in this age group, as it means they can get more of their pre-tax income into super,” said Dale.
Vamos says the Bill and associated regulations contain substantial and complex changes that impact many parts of the operation of superannuation funds. ASFA is urging all sides of politics to work together to ensure there are no Bills relating to superannuation left in limbo when the Parliament rises this week.