The SMSF Association has endorsed the federal government’s decision to amend the work test and provide more flexibility in relation to Australians’ superannuation payments as they approach retirement.
The SMSF industry body’s announcement follows the government’s introduction of draft legislation enacting its 2019 work test budget announcement giving individuals aged 65 and over greater ability to make superannuation contributions.
The draft legislation, designed to amend two existing pieces of the retirement savings legislative framework, including the Superannuation Industry (Supervision) Regulations 1994, will allow individuals aged 65 and 66 to make personal contributions to their superannuation fund without having to satisfy the work test.
The amendment will also raise the maximum age from 69 to 74 for people able to receive spousal contributions.
SMSF Association chief executive John Maroney said: “All these changes are welcomed, recognising as they do the need for Australians to have greater flexibility as they transition to retirement.
“Work patterns are constantly changing, so it’s essential the legislation underpinning superannuation changes too to help ensure Australians can accumulate sufficient savings to have a secure and dignified retirement.
“It has long been the association’s policy position to support greater flexibility for making contributions to superannuation. Although our preference is to remove the work test altogether, this measure is a step in the right direction and the government is to be commended for implementing this election promise.”
Speaking at the recent SMSF Association 2020 National Conference on the Gold Coast, Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume also highlighted the importance of a more flexible approach to super contributions.
“This draft legislation reflects the Morrison government’s ongoing commitment to ensuring all Australians have additional flexibility in how they save as they transition to retirement,” Hume said.
“The coalition understands the realities of the modern workplace. Work patterns have evolved and more women are rejoining the workforce than ever before. Our superannuation system needs the flexibility to match.”