SMSF Loan Experts

Low Interest Rate & Flexible SMSF Loans

It's not complicated when it's done right
Speak to one of our SMSF Loan specialists today 1300 781 680
You are here: Home / SMSF Loans / What the Changes to the Bring-Forward Measures and 6-Member Bill Mean for You

15 years ago, we saw the need in a growing market for lending experts who specialise in SMSF. Our team now combines years of experience through every aspect of self-managed super funds. Together, we organise more limited recourse borrowing arrangements (LRBA or SMSF loans) in a week than most other brokers or bank branches in a year. Here we share some of our insights as well as SMSF news with you.

Our expertise has been sought by and seen in Australian Broker, the Herald Sun, Money and Mamamia.

Make sure you get the right SMSF lending advice. Send us a message or call SMSF Loan Experts on 1300 781 680.

smsf changes

What the Changes to the Bring-Forward Measures and 6-Member Bill Mean for You

By Yannick Ieko

An exciting milestone has been reached on the journey to allowing you to have more members in your SMSF and to contribute more to super – for longer!

On Thursday the 17th June, both houses of parliament passed the bill to increase the number of members allowed in an SMSF and also the measures to extend the superannuation bring-forward age to 67. This could mean significant changes for you and your SMSF.

Contributing more / for longer

Historically, superannuation members could ‘bring forward’ future years’ non-concessional (after-tax) contributions. This allowed them to contribute larger sums of money into their super fund in one go without breaching their non-concessional contributions cap. However, that’s only available to members under age 65. The bill that’s been passed is to allow members under age 67 at any time during the financial year to utilise the bring-forward provision. It is being made possible by amending the sub-section 292-85(3)(c) of the Income Tax Assessment Act 1997. 

Once the bill has reached Royal Assent — that is, once it’s become an act of parliament and can come into force as law — it will be implemented via three changes:

  1. 1. The age at which the work test is required before members can contribute to super will increase from age 65 to 67.
  2. 2. The cut-off age to be able to make spouse contributions will increase from age 70 -75.
  3. 3. Members aged 65-66 will be able to make up to three years’ worth of non-concessional contributions into their super under the bring-forward rule.

In addition, there have also been some amendments made to the concessional (before tax) contributions cap limit. Pauline Hanson’s One Nation party made the following amendments:

  1. 1. Removing the excess concessional contributions charge from 1 July 2021
  2. 2. No deductions for re-contributions of amounts withdrawn under COVID-19 early release if it’s between 01 July 2021 to 30 June 2030.
  3. 3. Effectively increasing the contributions cap limit from $27,500 to $32,500 per year for people age 67, increasing a further $5,000 each year up to age 71.  

More members allowed in your SMSF

Another bill that’s been passed by both houses of parliament is the six-member bill which amends SIS Act, Corporations Act, ITAA 1997 and SUMLMA. The aptly named six-member bill increases the maximum number of allowable members in SMSF from four to six. It also amends provisions that related to SMSFs and small-sized APRA funds. 

What does this mean for you? 

  • Larger families are able to include more family members in the one SMSF. This makes for better financial and family unity, as well as saving on cost and financial administration. You will have greater investment flexibility, choice and lower fees. 
  • It enables those working longer into life or whose retirement plans have been adversely affected by COVID19 or employment change to top up their super or continue working to better meet their retirement objectives. The amendments also empower superannuation members to make lifestyle and employment decisions without restricting their ability to save for retirement using the superannuation environment. 
  • The potential for a more comprehensive array of investment or retirement strategies is made possible by opening the door to utilising the bring-forward provision and raising the ceiling on how many pre-tax dollars you can contribute in one financial year. Using the bring forward rule to contribute a larger amount of cash into your SMSF may enable cash flow to support property investment while increasing your borrowing power when it comes to getting an SMSF loan to buy property inside super. 

Get in touch with us if you’d like to chat about how you can use these changes to your advantage.