Updates on the Government’s Superannuation Reform Package
Members will no doubt be aware of the Government’s changes to the Superannuation system first introduced in the May 2016 Federal Budget. Legislation to give effect to some measures was passed by the Senate on 23 November 2016, with most measures intended to take effect from 1 July 2017.
In addition, the Superannuation (Objective) Bill 2016, which will enshrine the objective of superannuation in legislation and formalise the full suite of the Government’s May 2016 budget proposals, is being considered by the Senate Economics Legislation Committee. Issues being considered include the concessional contribution cap, the Division 293 tax threshold, the spousal tax offset, deductible personal contributions, and tax exemption of retirement income streams. The report is due on 14 February 2017, after which time the Bill will again be considered by the Parliament. CSC will continue to provide updates as further information on the progress of the legislation through the Parliament is known.
If you would like more information on the progress of the Bill, you can read the Explanatory memorandum and check on its progress on the Australian Parliament House website.
As the various changes progress through Parliament, CSC continues to seek clarity on how the measures will affect our members. Clarity is still being sought on a number of items relating to these changes, specifically in regard to how they will apply to Defined Benefit schemes. CSC is engaging with Treasury, Finance and Defence Departments on both policy and operational issues around the changes.
For more information on the Superannuation Reform package, visit: