A raft of superannuation changes introduced as part of this year’s budget may not pass through parliament before the next election, impacting the ability of SMSF advisers and trustees to plan for their use from next year onwards, according to Accurium.
In an update published on its website, Accurium noted that under the draft sitting calendar for the first half of 2022, it is unlikely there will be sufficient days for the government to introduce and pass legislation for nine changes contained in the budget and welcomed by the superannuation sector.
“The usual practice since 1994 has been to have three sitting periods of federal parliament each year, extending from February to April (autumn sittings), May to June (budget sittings) and August to December (spring sittings),” Accurium stated in the update.
The post added the last day for the most recent sitting of parliament was 2 December and the draft sitting calendar for the first half of 2022, already released by the government, had only the sitting days scheduled for the lower house and not the upper house.
“Excluding the three-day budget sitting, brought forward to 29 March, there is only seven sitting days scheduled for the lower house. However, passage of legislation to becoming law will require the Senate to sit as well,” it said.
“The last date for a normal house and half-Senate election is 21 May 2022 and constitutionally a campaign must run for a minimum of five weeks. It appears that the current ‘vibe’ for a likely election is sometime in March 2022.
“If this is the case, it is likely that the number of actual sitting days prior to the election in 2022 will be less than the seven scheduled.”
Accurium noted that once these sitting days ended and an election was called, the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 would lapse and bring to an end any current work on changes to the exempt current pension income choice of calculation, work test reforms for superannuation contributions and reducing the eligibility age for downsizer contributions.
Additionally, no further legislation will be introduced for the removal of the work test for those aged 67 to 74, the relaxation of the residency requirement for SMSFs and allowing holders of certain legacy pensions to exit them and commute amounts in excess of their transfer balance cap.
“With a federal election to be called next year, time is of the essence for superannuation-related measures, draft legislation and bills to be passed into law,” Accurium said.
“Any bills which have not negotiated their way to the Governor-General’s desk for his signature will lapse and any measures that are merely a twinkle in Treasury’s eye will fade away. Their future will then be dependent upon the outcome of the election and the agenda of the new 47th parliament of Australia.
