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. Amendments to this package were passed by the Senate on 23 November, with measures intended to take effect from July 1 2017.
However, some members may be interested to learn that the Superannuation (Objective) Bill 2016, which will enshrine the objective of superannuation in legislation and formalise the full suite of the Government’s proposals, is being considered by the Economics Legislative Committee and is due to report on 14 February 2017. This means that a substantive and total response to the Government’s legislation cannot be made until after this date, once the Bill is again put to the House.
Several elements of the Government’s proposals will be finalised once the Economic Legislative Committee concludes its business, including the Concessional Contribution Cap, the Division 293 Tax Threshold, the Spousal Tax Offset, Deductible Personal Contributions and Tax exemption of retirement income streams.
Please note the Government’s most recent announcements did not make reference to any of the proposed budget changes or how they would specifically apply to Defined Benefit schemes. Clarity is still being sought on a number of items relating to these changes. However, the impact of these latest amendments will also need to be assessed to determine how they may impact Defined Benefit scheme members.
CSC has been active in working with the Treasury, Finance and Defence Departments on both policy and operational issues since these changes were announced in May 2016.
There is a diverse range of interests involved in these changes that impact members of both our defined contribution and defined benefits schemes. CSC does its best to ensure that all of these interests are taken into account. CSC is also involved with a number of industry groups which makes representations to government in relation to superannuation, taxation and related policy matters.
As soon as the Economics Legislative Committee has concluded its review and the full implications of the final bill are known, CSC will update all members.
For more information on the Superannuation Reform package, visit: