Big changes to superannuation outlined in the 2021 Budget set out to tackle legacy issues that have been buried in the superannuation system for years, says Chartered Accountants Australia and New Zealand (CA ANZ).
“We welcome the ability to dismantle some older style legacy pensions that have been barnacles attached to our complicated superannuation system for many years,” said CA ANZ Superannuation Leader Tony Negline.
“The Government will now permit market linked, life expectancy and lifetime products to be demolished for a two-year period.
“This will allow a small number of SMSF members to get out of products that outlived their usefulness more than 10 years ago.
“CA ANZ along with the super industry have long advocated to Government for this solution and they should be congratulated for acting on this ongoing problem.
“We also welcome the relaxing the residency rules for SMSFs when fund members have temporarily moved overseas for work or family reasons.
“While this is a piecemeal approach to the complicated super problem our nation has, this flexibility is necessary and needed.”
The Budget also outlined that older Australians aged at least 67 and under 75 years of age can contribute money into super with the removal of the work test and the removal of the $450 minimum Super Guarantee threshold, said Negline.
“This will help Australians, particularly women, to be able to take better control of their financial future, including those who have accessed their super early.”
Australian Federal Budget 2021-22
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