SMSF essentials course - Changelog July 2021

The following changes have been made to modules within the SMSF essentials course to reflect various amendments to the superannuation laws:

Module 1

Section Changes required
1.1 - Overview of Superannuation
  • Increase of SG rate to 10% from 1 July 2021
1.2 - Three pillars
  • Increase of SG rate to 10% from 1 July 2021
1.4 – Different types of super funds
  • Amendment made to reflect change to SMSF membership from 4 to 6 from 1 July 2021
1.6 – Definition of a SMSF
  • Updated definition to allow for up to 6 members from 1 July 2021.  Tables 1 and 2 updated to reflect the change in allowable members from 4 to 6.  Removed the proposed law change text now that laws have passed. 
  • Updated Activity 2 – scenario 3 as a result of the change to 6 members.
1.9 - Residency

New slide, new content in workbook and resources link to notify student about the proposed federal budget changes to the residency rules from 1 July 2022, including:
  • Amendment to Central Management & Control (CM&C) test
  • Removal of active member test

Module 2

No changes made to technical content within the module at this time.

Module 3

Section Changes required
3.4 - Eligibility to make contributions
  • Update table to reflect changes in age limit for work test requirement (i.e. no work test 65-66 years)
  • Footnote added regarding proposed budget changes to remove work test for voluntary contributions and salary sacrifice contributions from 1 July 2022.
Activity 1
  • Updated to reflect 10% SG rate from 1 July 2021
3.5 - TSB
  • Updated slides and workbook to reflect indexation of total super balance (TSB) threshold to $1.7m.
3.6 - Work test
  • Section added on ‘proposed’ budget measures to remove work test for voluntary contributions.
3.6.2 - WTE
  • Updated to reflect work test exemption apply from 67 years (not 65) from 1 July 2020.
3.8 - concessional contributions
  • Change to reflect increase from 1 July 2021 to $27,500, with updates to the examples for both the SG rate and concessional contribution cap.
3.8.1 - Unused CC cap
  • Updated the example with revised CC cap amounts.
3.9 - NCCs
  • Updated to reflect increase in non-concessional contribution (NCC) cap from 1 July 2021.
  • Updated Appendix 1 & 2 charts for NCC rules.
  • Updated total super balance (TSB) bring-forward thresholds within the table for both slides and workbook.
  • Removed reference to transitional NCC arrangements for 2015-16 and 2016-17
3.9.1 - Additional NCCs during BF period
  • Updates made to examples to reflect NCC changes due to indexation.
Activity 3
  • Updated with current dates and reflect indexed NCC figures.
3.10 – Excess concessional contributions
  • Updated to reflect removal of excess concessional contribution charge (ECCC) from 1 July 2021
3.11 - other contribution types Updated tables within slides and workbook as follows:
  • Spouse contributions with increase in TSB threshold
  • Downsizer contributions - include proposed budget measure from 1 July 2022.
  • Added new COVID-19 recontribution available from 1 July 2021 to 30 June 2022.

Module 4

Section Changes required
4.3.6 - Compassionate grounds
  • Updates made to the COVID-19 $10k early release text to reflect that the ability to access the lump sum closed on 31 December 2020.
  • Added link to ATO website to reflect additional information that student may wish to read on the topic.
4.6.1 - minimum pension payment
  • Updated to reflect that the 50% temporary minimum pension has been extended for the 2021-22 year.
Activity 2
  • Updated questions and answers as a result of the extension to the 50% temporary minimum pension for 2021-22 year.
4.8 - Legacy pensions
  • Market Linked Pension – updated content to reflect that the 50% temporary minimum applies to this income stream type for the 2019-20, 2020-21 and 2021-22 income years.
  • Included a reference to Federal Budget announcement that a legacy pension conversion is proposed, allowing for a 2-year amnesty to convert to an alternative retirement product (e.g. ABP)
4.9 - When a pension ceases
  • Added new slides and workbook information about minimum pension shortfall and Commissioner’s General Powers of Administration (GPA) concession
  • Added a link to the Smarter SMSF sample document for the Minimum Pension Shortfall
4.10 - Transfer Balance Cap
  • Changes made to reflect indexation of the transfer balance cap (TBC) to $1.7 million
  • Update Example 1 as a result of the TBC indexation
  • Update Example 2 as a result of the TBC indexation

Module 5

Section Changes required
5.15.4 - actuarial certificate requirements
  • Referenced Treasury exposure draft legislation on red tape ECPI measures to apply for 2021-22 year.
5.19 - tax on lump sums
  • Update to thresholds for 2021-22 income year

Module 6

Section Changes required
6.1 – Financial Reporting
  • Updated table for number of parties to sign documents due to increase in membership from 4 to 6.
6.11 - SuperStream
  • Updated content to include rollovers and release authorities being captured by SuperStream from 1 October 2021.  

Module 7

No changes made to technical content within the module at this time.

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