Contribution rules and merger tax relief lead superannuation impacts

Budget Super Outcomes 2019

April 10, 2019
| Australia

Some minor changes to spouse contributions and contribution rules for retirees, as well as permanent tax relief for merging funds, lead a relatively quiet year for superannuation in the Australian federal Budget.

Our Super Outcomes Budget briefing outlines the measures announced and provides some initial observations.

Minor changes to contribution rules

The spouse contribution change is a sensible measure that will simplify the rules around acceptance of contributions by funds, but individuals aged 65-66 seeking to take advantage of the softening of the removal of the work test must remember that there are no changes to contribution caps or the transfer balance cap.

Permanent tax relief for merging funds

The tax relief for merging funds had been due to expire on 1 July 2020 but will now be made permanent. This is another sensible move which will add certainty for funds considering a merger, and support further industry consolidation.

Other Budget measures include:

  • Streamlining of the exempt current pension income
  • A range of new funding measures
  • ADF Super membership expanded.