Author: David Prichard
Superannuation
The Federal Budget did not contain any major changes directly affecting superannuation, however, there were some concessional changes and technical changes.
Work Test
From 1 July 2020 individuals aged 65 and 66 will be able to make voluntary superannuation contributions (both concessional and non-concessional) without needing to meet the contributions work test. In addition, the age limit for making spouse contributions will also be increased from 69 to 74.
Exempt Current Pension Income (ECPI)
An administrative requirement to obtain an actuarial certificate when calculating ECPI using the proportionate method will be removed, if all members of the fund are fully in the retirement phase for the entire income year.
In addition, superfunds with members in both the accumulation and retirement phases will be permitted to choose a preferred method of calculating ECPI.
The above changes are to take effect from 1 July 2020.
GST
The Federal Budget did not contain any major changes directly affecting GST.
ABN Entitlements
In an attempt to mitigate abuse of the ABN system by the “black economy”, entities holding an ABN and wishing to retain it will be subject to additional compliance requirements.
From 1 July 2021 ABN holders will be required to lodge an income tax return (there is no current requirement) and from 1 July 2022 confirm the accuracy of the details on the ABN register on an annual basis. Failure to do either of the above will result in the ABN being cancelled.
Should you require further information to the above or have any questions about how this may impact your situation, please do not hesitate to contact your engagement partner on 02 9283 1666.
