What does the Coalition win mean for super?

What does the Coalition win mean for super?

Alex Burke

Surprising quite a few commentators, the Coalition secured a major win on election day this year.

Now that the dust has more or less settled, though, what does Scott Morrison’s victory mean for people’s retirement savings?

We’ve already discussed the 2019 Budget’s changes to super, but let’s recap:

The Government will be delaying the start date for ensuring super funds only offer insurance on an opt-in basis – at least for accounts with balances of less than $6000 or new accounts belonging to under-25s – to October 1st. On top of this, those aged 65 to 66 will be allowed to make voluntary super contributions without meeting the work test from 1 July 2020.

If you’re aged 65 to 66 you’ll be allowed to make voluntary super contributions without meeting the work test from 1 July 2020. On top of that, you will “also be able to make up to three years of non-concessional contributions under the bring-forward rule.” Spouse contributions are now eligible up to age 74.

Perhaps most notably, Labor’s proposal to axe cash refunds for excess imputation credits, which Shadow Treasurer Chris Bowen said would “save the budget $11.4 billion over the forward estimates from 2018-19, and improve the budget bottom line by $59 billion over the medium term,” will not be going ahead.

The SMSF Association’s CEO, John Maroney, responded to the above, saying that “many SMSF trustees will be relieved that Labor’s proposed banning of franking credit refunds no longer threatens their retirement plans.”

He continued: “The Association had made its position clear over many months that it believed this policy, as designed, would be inequitable towards many lower income shareholders, including those who choose to have an SMSF, and especially if they were in retirement.”

How do you feel about the results?

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