Yesterday, The Commonwealth Parliament concluded its June sitting days and will now not return until 4th August 2020.
There were mixed results for the superannuation sector and financial advice with some bills becoming law (FASEA extension (Deferral of when Financial Advisers need to meet new qualifications for the Industry Codes of Ethics), Market Linked Pensions and death benefit rollovers) and others stalled (Bring-forward rule for non-concessional contributions and super choice).
Unfortunately, the Bill which intended to extend the bring forward non concessional contribution measures to apply up to age 67 did not proceed to a vote. The bring-forward rule allows three years of non-concessional contributions to be brought forward and made in a lump-sum in one year. This means it will not become law before 30 June 2020. In my personal opinion, this measure would have provided a lot of certainty for Australians who are turning 65 this year.
This adds further complexity to the superannuation system over the coming months.
Australians not find themselves in a situation where the work test age has been extended to 67 (where one needs to work 40 hours within 30 days when aged over 67 to make contributions to super), but not the bring forward rule (So after age 65, one can only make a non-concessional contribution of $100,000 per annum).
The law when passed will apply from 1 July 2020. However, it must be stressed that individuals should not assume the Bill will pass. Individuals will need to wait until the Bill is passed before being able to access the extended bring forward measures.