Michael Hallinan
Increase in Com Penalty Unit
- Increase to $275 (presently $222)
- Operative date 1 January 2023
- Example – breach of operating standard (such as failing to keep separate assets held by entity in its capacity as SMSF trustee from its personal capacity) – from 1 January 2023 the maximum penalty will be $5,500 as against current maximum penalty of $4,440
Previous Government’s unlegislated tax/super measures – to be dumped
- The proposal ((2016/17 Budget) to introduce Limited Partnership Collective Investment Vehicles – has been dumped
- Proposal (2018/19 Budget) to permit SMSFs to adopt 3 yearly audits – dumped
- Proposal (2018/19 Budget) to introduce a requirement for retirement income product providers to report standardised metrics in product disclosure statements – dumped
Previous Government’s unlegislated tax/super measures – to be implemented (mostly deferred start dates)
- Relaxing of residency requirements for SMSFs – from 1 July 2022 to the start of the income year commencing on or after date of Royal Assent of the relevant enabling legislation
No mention of legacy income streams
- No mention of the May 2021 Budget proposal to allow legacy income streams to be converted to account-based income streams (subject to Transfer Balance Account space) or cashed out
- Consequently, it is unknown whether this proposal has been dumped or will be implemented
Downsizer Contributions – reducing minimum eligibility age of (beneficiaries) of Downsizer Contributions
- To be reduced from age 60 to age 55
- Not change to the $300,000 cap
- This change had been previously announced
- Consequently, it is unknown whether this proposal has been dumped or will be implemented
Incentivising Pensioners to Downsize
- Extending the asset test exemption for principal home sale proceeds from 12 months to 24 months for income support recipient (e.g. Age pension)
- Changing the income test (to apply the lower deeming rate – currently 0.25%) to principal home sale proceeds when calculating the deemed income for 24 months after the sale of the principal home
- Applies from 1 July 2022
- Measures previously announced and enacted (Act No 43 of 2022)
Lifting the Income Threshold for the Commonwealth Seniors Health Card
- Increase cut-off point to $90,000 (currently $61,284) – singles
- Increase cut-off point to $144,000 (currently $98,054) – couples
- Applies from 4 November 20022
- Measure previously announced and now enacted (Act No 43 of 2022)
By Michael Hallinan, Executive Consultant – Self Managed Superannuation
