Bring forward rule becoming a headache for advisers

It is a real problem for advisers and clients that the bring forward arrangements in superannuation has not been passed into law yet, according to SuperConcepts.

Speaking at the SMSF Conference on the Gold Coast on Tuesday, SuperConcepts general manager for technical services and education, Peter Burgess, said it was difficult to advise clients who were turning 65 this year.

He said under regular circumstances advisers would wait until the year clients turned 65 and then trigger the bring forward rule to the maximum non-concessional contributions they could give.

“The problem we have now is that we don’t know when that final year is because the change is not law yet. What do you say to a client that is turning 65 this year and has the capacity to make the $300,000 non-concessional contribution?

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“Do you play it safe and trigger it? Or do you assume the changes will be made and contribute $100,000 this year and next, and then trigger it at age 67?

“The fact that this has not passed law yet is a real problem for advisers and clients.”

Burgess noted that he thought there was every chance the government would pass the change through law by 1 July, 2020.

“These are pretty straightforward changes to legislation and I think it will go straight to a bill with no consultation,” he said.

“There are plenty of sitting days left to get this legislation passed. It wouldn’t be the first time super legislation being rushed through Parliament at the end of financial year.”