Superannuation Legislation

Following Royal Assent of the ‘Your Future, Your Super’ legislation, new Superannuation Fund rules apply surrounding a new employee’s superannuation account, which will now follow them from job to job unless they make an active choice to nominate an alternative.

Following the end of the legislated Superannuation Amnesty Period which ran to 7 September 2020, the ATO released a draft Practice Statement (PS LA 2020/D1) to provide guidance to ATO staff in relation to Part 7 penalties on late Superannuation Guarantee Charge (SGC) Payments. It notes that where SGC is paid late (i.e. after the 28th day of the month following the end of the quarter) there will be a minimum penalty of 100% of the SGC amount and a maximum of 200%. The ATO staff will not have discretion to reduce the penalty below 100% where the employer hasn’t voluntarily come forward to lodge an SG Statement prior to any ATO compliance action.

Prior to 1 July 2020, mandated employer contributions such as Superannuation Guarantee paid into a superannuation account were accepted although, non-concessional or non-mandated contributions made by those aged 65-75 were subject to the “work test”. Effective from 1 July 2020, the Government has abolished the “work-test” for those aged 65 & 66 who make non-mandated contributions (e.g. voluntary contributions) to their superannuation account.

Announced late last month, Federal Parliament has now passed the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 or "Superannuation Guarantee Amnesty Bill", and is currently awaiting Royal Assent. 

New superannuation legislation will take effect from 1 July 2017. It has received Royal Assent so will apply in its present form. 

Non-concessional Contribution Issues

Carrying on from our first blog Superannuation Reform 2017 Overview, we wish to inform how you will be affected when the new superannuation legislation takes effect from 1 July 2017.

Changes to the Australian superannuation system have received royal assent (formal approval of an act of Parliament) and will take effect from 1 July 2017.