The Treasury Laws Amendment (2021 Measures No. 6) Bill 2021 has just received royal assent and contains important ECPI changes. There are also changes to information sharing regarding Family Law matters.
Exempt Current Pension Income (ECPI)
Removing the unnecessary requirement to obtain an actuarial certificate where the fund’s assets are 100% in pension phase, was initially proposed as part of the 2018-19 budget.
Following the major changes to superannuation introduced from 1 July 2017 funds where a member had more than $1.6 million in super at the previous 30 June were required to obtain an actuarial certificate to be able to claim ECPI even if 100% of the funds’ assets were supporting retirement phase income streams.
This requirement has now been removed for these funds and is a welcome cost saving to affected SMSFs and also reduces red tape. It is applicable from FY2021-22 financial year.
Please note the proposed legislation to allow trustees a choice of method for claiming ECPI where the fund has segregated and unsegregated periods during a financial year has not yet been finalised. We’ll keep you informed.
Improving the visibility of superannuation assets in family law proceedings
This Bill amends the Taxation Administration Act 1953 and the Family Law Act 1975 to allow the identification of superannuation assets held by parties to family law proceedings; thereby leveraging information held by the ATO.
It will allow a party to a family law property proceeding (in the courts of Family Court of Australia, Federal Circuit Court of Australia and Family Court of WA) to be able to apply to the court and request information as to the identity and value of their former partner’s superannuation interests.
The sharing of information will make it harder for parties to either hide, under disclose or not disclose their superannuation benefits during such proceedings.