The new Labor government’s singling out in its inaugural budget of the decision to delay the superannuation residency changes announced by the previous government could be a negative signal with regard to other anticipated amendments to the retirement savings system, a technical specialist has said.
“What was interesting about the budget regarding the changes to the residency rules being extended was the omission of any mention about the measures to address legacy pensions,” SuperGuardian education manager Tim Miller told smstrusteenews.
“Those two measures have been consistently lumped together, the residency and the legacy pensions, so it was interesting one was mentioned in this budget and the other wasn’t.”
SMSF Association policy manager Tracey Scotchbrook saw the inclusion of the residency rules amendment in the budget as a positive development, but concurred with Miller about the exclusion of any mention of legacy pensions.
“To take a positive from the residency rule announcement at least it confirms it is on the government’s policy agenda even though it has been delayed,” Scotchbrook said.
“It’s a shame that it has been delayed because there are people it is going to provide important relief for, but at least it’s still there on the policy agenda.
“A noticeable absence was the legacy pension reforms that were announced in that same year. That will be something we’ll be looking to continue our engagement with government on because they’re important measures to get through for those older Australians who have got those old-style pensions and reserves and are wanting to exit their SMSF.”
Overall, Miller described the first budget brought down by the new Labor government as one of confirmation as opposed to one of surprises.
“It confirmed a lot of the measures previously announced, such as the downsizer pension incentive, the downsizer contribution qualifying age reduction and the freezing of the deeming rates for the Commonwealth Seniors Health Card,” he noted.
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