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Brought-forward rule change

Newbie

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In the '19-'20 Budget, it was announced that the Brought-Forward Rule (under which up to 3 years of Non-Concessionary Contributions could be made at the one time) would be amended from applying up to age 65 yrs to up to age 67 yrs.  This was to bring this Rule in line with eligibility for the Age Pension (now 67 yrs).

This change was to be made retrospectively, so that it would commence on 1 July 2020.

A Bill to legislate this change has been tabled in the Federal parliament, but not yet debated.

I have written (twice) to the Minister for Superannuation, Sen. Jane Hume about whether the Bill will be put to parliament this financial year, but twice have received no reply.

Does anyone know anything about when this change is to be made (which clearly is of interest to anyone over 65 yrs, but not yet 67 yrs, and wanting to maximise their super contributions)?

 

 

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Devotee Registered Tax Practitioner

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It is more than "mere speculation".  It was announced in the last Budget Speech that this change to superannuation law would be made and would retrospectively apply from 1 July 2020.

My inquiries indicate that there is a Bill already tabled in parliament to enact the announced lift in the Brought-Forward Rule age limit from 65 yrs to 67 yrs.

The only remaining issues are 1) when it will be introduced ('read') by the Minister, and 2) whether it will be passed.

Even the ATO mentions the proposed age uplift on its website!

 

We know all that  -  but it is not law till it is passed.

 

I used the term speculation because I have seen a lot of bills that were never passed.

 

For example, if the govt went to an election before the bill is passed thru the senate, then the bill would lapse  -  and therefore never be passed.  The new govt would have to start again -  but they may have other priorities.

 

 

 

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Devotee Registered Tax Practitioner

Replies 5

Does anyone know anything about when this change is to be made (which clearly is of interest to anyone over 65 yrs, but not yet 67 yrs, and wanting to maximise their super contributions)?

 

This is a matter for goverment  -  it is only speculation until passed into law.

 

Newbie

Replies 4

Thank you for your reply.

It is more than "mere speculation".  It was announced in the last Budget Speech that this change to superannuation law would be made and would retrospectively apply from 1 July 2020.

My inquiries indicate that there is a Bill already tabled in parliament to enact the announced lift in the Brought-Forward Rule age limit from 65 yrs to 67 yrs.

The only remaining issues are 1) when it will be introduced ('read') by the Minister, and 2) whether it will be passed.

Even the ATO mentions the proposed age uplift on its website!

My query, therefore, is whether anyone knows when 1) is scheduled.

 

 

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

It is more than "mere speculation".  It was announced in the last Budget Speech that this change to superannuation law would be made and would retrospectively apply from 1 July 2020.

My inquiries indicate that there is a Bill already tabled in parliament to enact the announced lift in the Brought-Forward Rule age limit from 65 yrs to 67 yrs.

The only remaining issues are 1) when it will be introduced ('read') by the Minister, and 2) whether it will be passed.

Even the ATO mentions the proposed age uplift on its website!

 

We know all that  -  but it is not law till it is passed.

 

I used the term speculation because I have seen a lot of bills that were never passed.

 

For example, if the govt went to an election before the bill is passed thru the senate, then the bill would lapse  -  and therefore never be passed.  The new govt would have to start again -  but they may have other priorities.

 

 

 

Newbie

Replies 2

Once again, thank you for your reply.

However, we are on different trams.

I do not disagree that until the legislation is passed, it is not law(!)

I have asked - and continue to ask - whether anyone knows when the tabled Bill is planned to be introduced by the Minister.

As you would appreciate as a Tax Practitioner, anyone approaching 67 years (the proposed new upper limit for Brought-Forward superannuation contributions) will be particularly interested.

Community Moderator

Replies 1

Hi @SelfMan 

 

Once is has been passed we will have information on our website. To find out about proposed changes you could check out the Treasury website. 

Newbie

Replies 0

Thanks Kylie.

It looks like the Bill has gone through the House of Reps and has been in the Senate since August 2020.