Regulation, Superannuation

Budget super measures unlikely

federal budget superannuation

The 2022 federal budget is not expected to contain any significant announcements for SMSFs, but may clarify measures previously introduced.

A technical specialist expects no significant new measures regarding the superannuation sector to be handed down in the 2022 federal budget, but is forecasting some further developments for some of the initiatives announced last year by the government.

“We hope that we’ll see the government confirm and maybe even table some drafts around measures they’ve announced that we haven’t got process on,” SuperConcepts SMSF technical and strategic solutions executive manager Philip La Greca told selfmanagedsuper.

“So there are a few little measures, certainly for the SMSF space, that we’re looking at, particularly around legacy pensions.”

The sector is awaiting further developments on two fronts concerning these income streams, La Greca said.

“One is the commutation of excess market-linked pensions and then there is the amnesty that the government talked about when handing down last year’s budget. So we’re hoping we’ll at least see some affirmation on those,” he said.

Looking toward the federal election, which is expected to be held in May, La Greca revealed he was not expecting Prime Minister Scott Morrison to campaign on any notable superannuation policies.

“The government’s pretty well done as far as superannuation goes. Most of what it’s attempted to do or have done during the last few years has been the response to the Productivity Commission report,” he said.

To this end, he acknowledged issues such as duplicate insurance cover, multiple accounts and underperformance with the recent Your Future, Your Super legislation.

“So in terms of big-ticket items, that’s I think done. What it might do is some tidying up. The government loves this idea of reducing red tape and there may be some measures around that,” he said.

He said there is a possibility some small measures regarding Australian Prudential Regulation Authority-regulated funds may eventuate, such as addressing the use of reserves.

La Greca will be covering what eventuates from the budget and the federal election in detail at the selfmanagedsuper SMSF Professionals Day 2022.

To register for the event, please click here.

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