On 29 November 2016, the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 received royal asset, bringing some of the most wide ranging changes to the Australian superannuation legislation for at least 10 years. These changes were foreshadowed in the 2016-2017 Australian Federal Budget.
The explanatory memorandum to the legislation makes clear that the purpose of superannuation is to provide for an individual’s retirement. Going forward, superannuation is going to be used less and less as a wealth planning creation vehicle where significant amounts of assets can be accumulated and subject to tax at concessional rates.
Going forward, as baby boomers pass away, we can expect to see the money that they kept in superannuation is likely to pass into a family trust, as it simply won’t be possible to make large non-concessional contributions to superannuation.
The major changes to superannuation made by Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 are set the presentation “Estate Planning, Superannuation and Taxation”