Speaking to ifa, Peter Burgess – who is also director of policy and education for the SMSF Association – said it is hard to tell what’s in store for the sector as “election years rarely bode well for superannuation”.
“They usually come with promised changes to superannuation that can unnerve the industry and rattle fund members – especially those in retirement,” Mr Burgess said.
“Compounding the situation in this election year is the fact that some important super measures failed to be passed by the Parliament before the summer holiday adjournment. They may still be passed before the election is called, but the odds are lengthening.”
Some reforms for the sector are yet to be introduced into Parliament including changes to the SMSF residency rules and a two-year amnesty for legacy pensions; both of which were announced in the 2021 federal budget.
“But in an election year, it’s all up in the air,” he continued.
“Even if the Coalition is re-elected, the legislation to give effect to these measures, assuming they are not passed before the election is called, will need to be reintroduced into the Parliament. And if Labor is elected, they could be scrapped altogether.”
Mr Burgess said a Labor win, based in its previous super policy, could see a “tightening” of contribution caps and a lowering of the Division 293 income threshold for taxing super contributions.
Aside from the election, Mr Burgess said 2022 will be a year of “adjustment and transition” for the SMSF sector, which includes a requirement for company directors, including existing directors of an SMSF corporate trustee to obtain a director ID by 30 November next year.
“Amid all this uncertainty, one thing looks certain – 2022 will be an interesting ride for the SMSF sector,” Mr Burgess said.
