The principal Acts in 2017 which amended the legislation reproduced in the Australian Superannuation Legislation 2018 title are noted below, together with a summary of the main changes made by the Acts:
- Treasury Laws Amendment (2017 Measures No 2) Act 2017 (No 55 of 2017)
- Treasury Laws Amendment (2017 Measures No 4) Act 2017 (No 94 of 2017)
- Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 1) Act 2017 (Act No 132 of 2017)
- First Home Super Saver Tax Act 2017 (Act No 133 of 2017).
Legislative amendments and other changes which have commenced as at 1 January 2018 (the date to which the legislation in Australian Superannuation Legislation was consolidated) are fully incorporated in the legislation and mentioned in the history of the relevant provision. Amendments and changes which only take effect after 1 January 2018 are not consolidated, but are shown in the CCH Notes in the appropriate place in the legislation.
Treasury Laws Amendment (2017 Measures No 2) Act 2017 (No 55 of 2017)
This Act amends six Acts to make amendments in relation to certain measures arising out of the enactment of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016.
The measures deal with the transfer balance cap; concessional and non-concessional contributions; limited recourse borrowing arrangements and the transfer balance account; objective of superannuation; transition to retirement income streams; capital gains tax relief for superannuation funds; and streamlining of administrative processes.
Acts amended: Income Tax Assessment Act 1997 (ITAA 1997), Income Tax (Transitional Provisions) Act 1997 (ITTPA), Superannuation Guarantee (Administration) Act 1992 (SGAA), Taxation Administration Act 1953 (TAA), Legislation Act 2003, Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016.
Treasury Laws Amendment (2017 Measures No 4) Act 2017 (No 94 of 2017)
This Act amends Div 311 of the ITAA 1997 to extend the CGT asset roll-over relief for mandatory transfers of accrued default members’ amounts to a MySuper product within a superannuation fund, and provide similar relief to interposed entities involved in the transition to a MySuper product.
Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 1) Act 2017 (Act No 132 of 2017)
Schedule 1 to the Act inserts Div 138 into Pt 3-20 in Sch 1 of the TAA to establish the First Home Super Saver Scheme (FHSS Scheme), which allows individuals who are saving for their first home to take advantage of the concessional taxation arrangements that apply to the superannuation system.
Under the Scheme, first home savers who make voluntary superannuation contributions can withdraw those contributions (up to certain limits) and an amount of associated earnings for the purpose of purchasing their first home. Concessional tax treatment applies to amounts that are withdrawn under the Scheme.
- The Scheme applies to voluntary contributions that are made on or after 1 July 2017.
- Such contributions can be withdrawn under the Scheme from 1 July 2018.
- Individuals who do not purchase their first home within a specified period can either recontribute an amount into superannuation, or pay an amount of tax (the first home super saver tax) to unwind the concessional tax treatment that had applied.
Schedule 2 to the Act allows an individual to use the proceeds in relation to one sale of their main residence to make superannuation contributions (downsizer contributions) of up to $300,000 to their superannuation fund if they are 65 years of age or over. Downsizer contributions can be made regardless of the other contributions caps and restrictions that may apply to making voluntary contributions.
The amendments apply to proceeds from contracts for the sale of a main residence entered into (exchanged) on or after 1 July 2018.
First Home Super Saver Tax Act 2017 (Act No 133 of 2017)
This Act imposes a ‘‘first home super saver tax’’ on individuals who do not enter into a contract to purchase or construct their first home or recontribute the required amount into superannuation, or have failed to notify the Commissioner that they have purchased a home or made the required contribution, under the FHSS Scheme.
This summary does not cover other amending Acts in 2017 which make amendments:
- of a consequential, corrective or technical nature to the legislation reproduced in the Australian Superannuation Legislation, or
- relating or incidental to tax rates, general tax administration and superannuation fund operations.
The Australian Superannuation Legislation 2018 book contains all the essential legislation affecting superannuation funds, members and trustees, together with a summary of 2017 amending Acts and Regulations to superannuation, tax and related laws. It also contains proposed and draft legislation affecting superannuation.