STRATEGY
Legislative impact on contributions
Anthony Cullen details some of the recent legislative changes and the impact they have had on contribution opportunities for SMSF members.
ANTHONY CULLEN is SMSF technical specialist at SuperConcepts.
42 selfmanagedsuper
A raft of legislative changes made in the past two years have had an impact on SMSF funds, how and when we can contribute to our funds and when we can access our funds in retirement. SuperConcepts and selfmanagedsuper combined for the fourth annual SMSF Professionals Day on 27 October – the first digital edition of the forum – where these issues were discussed and we offered advice to professionals enabling them to assist their clients. The legislative changes discussed included: • the ability for people aged 65 and over to make a downsizer contribution of up to $300,000 to their super fund from the proceeds of selling their home, • the ability to make catch-up concessional super contributions if you have a total superannuation balance (TSB) of less than $500,000,
• work test exemptions for Australians aged between 65 and 74 with a superannuation balance below $300,000, and • the increase in the work test age from 65 to 67. Many of these amendments can be confusing, especially as they can collide with each other, making it challenging to know how, when and how much trustees can contribute to their SMSF fund in their senior years. Here are the basics on what these changes mean and some advice on how you can help clients make the most out of their SMSF by leveraging the current legislative landscape.
Downsizer contributions for people over 65 It is quite common for people to sell the family home when they reach retirement age so they can
