The exposure draft Bill and Regulations are intended to give effect to the measure: Superannuation – improving flexibility for older Australians announced in the 2019-20 Budget, effective from 1 July 2020.
The Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) currently allow people aged 65 to 74 to make voluntary contributions to superannuation, if they work a minimum of 40 hours over a 30 day period in a given financial year (the work test). The SIS Regulations also allow only people that are aged less than 70 to receive spouse contributions. Similar restrictions apply in respect of the retirement savings accounts under the Retirement Savings Accounts Regulations 1997 (RSA Regulations).
The draft Regulations would amend the SIS Regulations to both allow people aged 65 and 66 to make voluntary contributions without meeting the work test, and people aged 70 to 74 to receive spouse contributions. The draft Regulations would make corresponding amendments to the RSA Regulations.
The Income Tax Assessment Act 1997 (ITAA) allows people aged less than 65 years to make up to three years of non-concessional contributions under the bring-forward arrangements.
The draft Bill would amend the ITAA to extend access to the bringforward arrangements to people aged 65 and 66 for the first time.
Further details on the draft Bill and Regulations are contained in the Explanatory Statements.
The community’s views are sought on the draft Bill and Regulations.