20 May 11 Superannuation Subcommittee
The Tax Institute’s Superannuation committee, chaired by Daniel Butler FTIA (DBA Lawyers) met on Wednesday 18 May. The committee discussed the recent Budget superannuation announcements, particularly the excess contributions tax (ECT) changes. It was agreed that the changes are welcomed and should deal with many inadvertent breaches of the caps. It was acknowledged that further changes and consequential amendments may be required, and that the committee will continue to consult with the Government and Treasury on future ECT reforms. The committee also discussed the Budget proposal extend the director penalty regime to superannuation guarantee amounts (refer page 45/46 of Budget Paper No. 2). Although this announcement appears under the heading “Tax compliance — countering fraudulent phoenix activities by company directors” the committee observed that the measures appear to not just apply to phoenix activities. Concern was expressed with the announcement, particularly given the complexity of the super guarantee legislation and how it applies to contractors. The committee resolved to closely monitor the implementation of this announcement and provide comments to the Government when consultation occurs.
On the day that the committee met, the draft regulations for SMSF investments in collectables and personal use assets were released. The committee is currently considering the ED and accompanying EM. If members have comments or observations that they would like to contribute to a potential submission, please contact us at Tax Policy.