The 2020-21 Federal Budget to be handed down on 6 October will be one of the most crucial in Australia’s history. The Budget will provide a further update on the economic and fiscal impacts of the coronavirus in Australia and is expected to set out the path to economic recovery.
As in most years, superannuation forms a key part of the economy and policy consideration. We expect this Budget to be no different.
However, we are not expecting any specific measures relating to SMSFs in this year’s Federal Budget.
A key reason for this is related to the COVID-19 pandemic. Most measures will need to be big picture reforms that ensure that Australian’s are able to engage in an economic recovery. This contrasts with more detailed and granular improvements in the operation of the SMSF legislation that we have traditionally advocated for.
Another aspect intertwining with superannuation and the Federal Budget, is the completed but not yet released, Retirement Income Review. This, over 600 page review of the entire retirement income system, is expected to provide a set of facts which will help formulate significant policy changes in superannuation and SMSFs. With this report unlikely to be released prior to the Budget, it is hard to predict what information the Government may already be privy to that could form some measures released in October or be delayed for a later time.
The good news however is that the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume, recently reiterated the Government’s commitment to their election promise that there will be no adverse tax changes to the superannuation system.