BT clears up work test changes
BT has cleared up recent changes to the work test, confirming that it will no longer be required for non-concessional, bring forward non-concessional and small business contributions up to the age of 75.
Speaking to Money Management, Tim Howard, BT advice technical and regulatory, said amendments to the Superannuation Industry (Supervision) Act 1993 had made work test rules simpler for older Australians wishing to make contributions.
The amendments had passed Senate in early February and received Royal Assent in February 22, to be introduced from next financial year, but Howard said he had received a number of enquiries from advisers about what the changes entailed.
“There was no indication or commentary around the extension, it was expected that it would cover all voluntary member contributions and now we’ve seen the changes to the SIS regulations [so] we know it extends to that,” he said.
“It’s made contributing easier, it’s made super fund trustees’ jobs easier in the simplicity and what they need to check to accept a contribution and it makes the planning opportunities better,” Howard said.
He said the changes would benefit those that had small businesses.
“That's historically been a challenge for small business owners that might sell the business one year, [they’re] no longer working [and they] want to make a large, small business Capital Gains Tax exempt contribution the next year, but they’re no longer meeting the work test.
“We now have certainty that they will be able to do that now.”
Howard said members wishing to make a deduction with a member contribution would still need to meet the work test.
“Those requirements have been moved into the Income Tax Act and will effectively be on the declaration that you sign when you lodge your notice of intent to claim a deduction with a super fund.”
AUTHOR
Liam Cormican
Recommended for you
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
