2021-2022 Federal Budget Update – A strong Budget for SMSFs

As expected, the 2021-2022 Federal Budget has a strong emphasis on job growth and women’s security. From an SMSF perspective, after a few quiet Budgets, there were some welcome surprises for the SMSF investors in this year’s Federal Budget.

The following is a brief summary of the key changes relevant to the SMSF sector:

  • Repealing the work test for voluntary contributions – the SMSF Association has long advocated for the removal of the work test.
  • Reducing the eligibility age for downsizer contributions.
  • Relaxing residency requirements for SMSFs – the SMSF Association advocated for the central management and control test to be increased from two to five years and for the active member test to be removed in our 2021 Federal Budget submission.
  • Legacy retirement product conversions – the SMSF Association advocated for a minimum 12 month amnesty period in our 2020 supplementary Budget submission.
  • Increasing the amount that can be withdrawn under the First Home Super Saver Scheme.
  • Removing the $450 per month threshold for superannuation guarantee eligibility.

At the time of publishing, the contents of this resource were accurate and correct.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association