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- Increasing the amount that can be withdrawn under the First Home Super Saver Scheme.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.
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