‘Election years rarely bode well for superannuation’: SMSF Association
SMSF Association deputy chief executive Peter Burgess believes 2022 will be a tricky year for the SMSF sector.
Speaking to sister title, ifa, Peter Burgess said it is hard to tell what’s in store for the sector as “election years rarely bode well for superannuation”.
“They usually come with promised changes to superannuation that can unnerve the industry and rattle fund members – especially those in retirement,” Mr Burgess said.
“Compounding the situation in this election year is the fact that some important super measures failed to be passed by the Parliament before the summer holiday adjournment. They may still be passed before the election is called, but the odds are lengthening.”
“But in an election year, it’s all up in the air,” he continued.
“Even if the Coalition is re-elected, the legislation to give effect to these measures, assuming they are not passed before the election is called, will need to be re-introduced into the Parliament. And if Labor is elected, they could be scrapped altogether.”
Mr Burgess said a Labor win, based in its previous super policy, could see a “tightening” of contribution caps and a lowering of the division 293 income threshold for taxing super contributions.
Aside from the election, Mr Burgess said 2022 would be a year of “adjustment and transition” for the SMSF sector, which includes a requirement for company directors, including existing directors of an SMSF corporate trustee to obtain a director ID by 30 November this year.
“Amid all this uncertainty, one thing looks certain – 2022 will be an interesting ride for the SMSF sector,” Mr Burgess said.
Emma Ryan is the deputy head of content at Momentum Media and editor of the company's legal publication, Lawyers Weekly.
Emma has worked for Momentum Media since 2015 and has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
A journalist by training, Emma has spent her career connecting with key industry stakeholders across a variety of platforms, including online, podcast and radio. She graduated from Charles Sturt University with a Bachelor of Communications (Journalism).