The Federal Government has reinforced that it intends to legislate to prohibit the deduction of advice fees from MySuper accounts.
The Government’s intentions were reinforced by the Assistant Treasurer, Stuart Robert in an address to the SMSF Association conference in Melbourne on Friday where he said the move would represent a part of the Government’s response to the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Robert’s statement came at the same time as he announced that, on the basis of feedback from stakeholders, the Government had decided to extend the arrangements around the work test exemption for those aged between 65 and 74 with total superannuation balances below $300,000.
He said that the Government had decided to allow those who used the work test exemption in the year they turned 65 to access bring-forward arrangements for non-concessional contributions.
“These individuals will be able to make up $300,000 in contributions from after-tax income, providing extra flexibility to get their affairs in order as they prepare for retirement,” Robert said.
He said the change would also align the contribution rules for the work test exemption with those that apply under the work test, make the system simpler to understand for members.