2018-19 Federal Budget
The key changes proposed for SMSFs and superannuation are:
Increasing Maximum SMSF Members from 4 to 6
The definition of a SMSF will be changed to have a maximum number of members from the current 4 to 6. This may provide opportunities for family's or business partners to expand there SMSF's giving greater flexibility to the structure. Note: Cooper Grace Ward Lawyers have recently pointed out that Trust legislation in Queensland, New South Wales, Victoria, Western Australia and the ACT restricts the maximum number of trustees to four. This will mean that a corporate trustee may be required in these states.
opt-in for Life insurance cover for individuals under 25 years of age
For individuals under 25 years of age or with account balances under $6000 there will be an opt-in for life insurance to ensure that unnecessary fees do not erode smaller balances. Life insurance cover will also cease where no contributions have been made for a period of 13 months.
Removal of Work Test for some members in their first year of not
A work test exists in order to make contributions between 65 and 74 (see information on Work Test). The proposal is to remove the work test in the first year that they do not meet the work test requirements for members with total superannuation balances of less than $300,000.
Three‑yearly SMSF audit cycle for some self‑managed superannuation funds
The Government will change the annual SMSF audit requirement to a three yearly requirement for SMSFs with a history of good record keeping and compliance. The measure will start on 1 July 2019 for SMSF trustees that have a history of three consecutive years of clear audit reports and that have lodged the fund’s annual returns in a timely manner.