Amendments supporting the integrity of the Government’s comprehensive suite of superannuation taxation reforms have come into effect with the passage of the Treasury Laws Amendment (2017 Measures No. 2) Bill though Parliament.
These reforms improve the fairness, sustainability, and flexibility of the superannuation system, including:
- ensuring recipients of an existing structured settlement or personal injury order do not pay tax on their superannuation income streams as originally intended; and
- supporting the integrity of the new transfer balance cap by including a repayment of a borrowing under a Limited Recourse Borrowing Arrangement in the cap in certain circumstances.
As part of this Bill, the Government has also refined changes to personal and corporate insolvency law made by the Insolvency Law Reform Act 2016. This change will reduce legal complexity, increase certainty for insolvency practitioners and remove unnecessary costs from insolvency proceedings.
The amendments also assist the Fair Entitlements Guarantee Recovery Program in its work reclaiming funds paid out under the program.