Self-Managed Superannuation Fund (SMSF) Legislation update

Senate passes 6 member fund Bill and non-concessional contribution (NCC) cap bring forward extension to individuals aged 65 and 66.

On 17 June 2021, the Australian Senate passed, without amendment, both the Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 and the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020. These measures extend the NCC bring-forward age up to 67 (from 1 July 2020) and increase the maximum number of SMSF members from four to six.

Labor sought to move an amendment to review the operation of the measures in 12 months’ time, including reviewing the conduct of financial advisers, SMSF trustees and SMSF investment performance and governance but was narrowly defeated. The Bill now moves to the Lower House for debate where it is expected to be passed without amendment.

One Nation proposed an amendment which would allow the recontribution of COVID-19 early release amounts without penalty, and the removal of the Excess Contribution Charge in situations where an individual has exceeded their concessional contributions cap through no fault of their own, to which the Government agreed. However, One Nation also proposed an amendment to increase the concessional contributions cap for individuals over aged 67 and over which was defeated.

These measures should provide greater flexibility for families with more than 2 children who were always impacted by the maximum number of 4 members and the extension of the bring forward provisions for those age 65 and 66 now aligns with the increased retirement age of 67.

If you have any questions on how these measures might best benefit you and your family, please contact us.

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