The federal government needs to move quickly on its proposal to change the work test age and bring-forward arrangement availability in order to remove uncertainty for members looking to benefit from the measures, an SMSF expert has said.
In a blog post SuperConcepts SMSF technical services executive manager Mark Ellem said the government needed to act swiftly on its proposal to extend the work test from 1 July 2020.
“Those turning 65 this financial year may be entitled to put an extra $200,000 into super if [the] proposed change becomes law. We call on the government to enact this change without delay to remove the uncertainty for this group wishing to maximise their nest egg,” Ellem said.
“In addition to being able to make personal contributions for an additional two years without having to meet the work test, the increase in the work test age from 65 to 67 provides an additional two years that an individual can utilise the standard $100,000 non-concessional cap prior to triggering the bring-forward rule in the year that they attain the work test age.”
He noted a delay on the government’s behalf would place members who were anticipating the proposed changes at a disadvantage.
“The risk is that the proposal doesn’t get passed, the start date is deferred or the final version of the law differs from expectation,” he said.
He pointed out that while a relatively simple regulation amendment would achieve the change to the work test age, the corresponding change to the bring-forward rule would require an amending bill to pass both houses of parliament in order for the government’s proposal to take effect.