Super Reforms Series
We will be sending you a series of short articles on the impending super reforms over the coming days. We will be breaking down the changes into more digestible pieces whilst suggesting planning options. Our particular focus will be the period leading up to 30 June 2017 when a careful assessment of each client’s position will be required, even if they are under the $1.6m cap.
Interestingly, the law surrounding the basis of the changes, the definition of the object of superannuation, has been referred to the Senate Standing Committee on Economics (not due to report until February 14) so it will not be introduced into Parliament until the New Year. This is unfortunate as much of the reform is expected to be passed before Parliament rises at the end of November. In any case, Kelly O’Dwyer has made it plain that the object of super will remain at the rather modest “to provide income in retirement to substitute or supplement the Age Pension. The government has no intention of introducing any subjective intent such as “adequacy”. The Opposition wants a “better” definition. I would expect that the Senate Standing Committee will merely rubber stamp the government’s position but we shall see. Anything can happen in this Parliament.
Though the super reforms are not yet law our expectations are that they will become so with only minor modifications. We hope you find the series of value.