Treasury Laws Amendment (More Flexible Superannuation) Act 2021

Administered by Department of the Treasury

Legislation au C2021A00045 In force Act

Legislation content

 

 

 

 

 

 

Treasury Laws Amendment (More Flexible Superannuation) Act 2021

 

No. 45, 2021

 

 

 

 

 

An Act to amend the law relating to taxation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Bring forward non‑concessional contributions cap

Income Tax Assessment Act 1997

Schedule 2—Excess concessional contributions

Part 1—Amendments

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Part 2—Repeal

Superannuation (Excess Concessional Contributions Charge) Act 2013

Part 3—Application

Schedule 3—Re‑contribution of COVID‑19 early release superannuation amounts

Income Tax Assessment Act 1997

 

 

 

Treasury Laws Amendment (More Flexible Superannuation) Act 2021

No. 45, 2021

 

 

 

An Act to amend the law relating to taxation, and for related purposes

[Assented to 22 June 2021]

The Parliament of Australia enacts:

1  Short title

  This Act is the Treasury Laws Amendment (More Flexible Superannuation) Act 2021.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

22 June 2021

2.  Schedules 1 and 2

The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent.

1 July 2021

4.  Schedule 3

1 July 2021.

1 July 2021

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Bring forward non‑concessional contributions cap

 

Income Tax Assessment Act 1997

1  Paragraph 292‑85(3)(c)

Omit “65”, substitute “67”.

2  Application

The amendment made by this Schedule applies to non‑concessional contributions made on or after 1 July 2020.

Schedule 2—Excess concessional contributions

Part 1—Amendments

Income Tax Assessment Act 1997

1  Section 26‑74

Repeal the section.

2  Section 291‑1 (note)

Omit “about a charge you may be liable to pay, and”.

3  Section 291‑15 (note 2)

Repeal the note.

4  Subsection 995‑1(1) (definition of excess concessional contributions charge)

Repeal the definition.

Taxation Administration Act 1953

5  Subsection 8AAB(4) (table item 44Q)

Repeal the item.

6  Division 95 in Schedule 1

Repeal the Division.

7  Section 97‑1 in Schedule 1

Omit “and any excess concessional contributions charge”.

8  Section 97‑5 in Schedule 1 (heading)

Omit “and charge”.

9  Section 97‑5(1) in Schedule 1

Repeal the subsection, substitute:

 (1) If you have *excess concessional contributions for a *financial year, the Commissioner must make a written determination stating the amount of those excess concessional contributions.

10  Subsection 250‑10(2) in Schedule 1 (table item 37AD)

Repeal the item.

11  Subsection 250‑10(2) in Schedule 1 (table item 135Q)

Repeal the item.

12  Subsection 280‑100(4) in Schedule 1

Repeal the subsection.

Part 2—Repeal

Superannuation (Excess Concessional Contributions Charge) Act 2013

13  The whole of the Act

Repeal the Act.

Part 3—Application

14  Application

The amendments made by this Schedule apply in relation to excess concessional contributions for a financial year starting on or after 1 July 2021.

Schedule 3—Re‑contribution of COVID‑19 early release superannuation amounts

 

Income Tax Assessment Act 1997

1  Subsection 290‑150(2)

After “290‑168”, insert “, 290‑169”.

2  After section 290‑168

Insert:

290‑169  Contribution must not be a COVID‑19 re‑contribution

  You cannot deduct the contribution if it is a contribution that is covered under section 292‑103 (about COVID‑19 re‑contributions).

3  After subparagraph 292‑90(2)(c)(iiia)

Insert:

 (iiib) a contribution covered by section 292‑103 (COVID‑19 re‑contributions);

4  After section 292‑102

Insert:

292‑103  COVID‑19 re‑contributions

 (1) A contribution is covered by this section if:

 (a) the contribution is made by you to a *complying superannuation plan in respect of you in a *financial year; and

 (b) the contribution is made in the financial year beginning on 1 July 2021, or a later financial year ending on or before 30 June 2030; and

 (c) one or more amounts (the COVID‑19 early release amounts) have been paid to you from a complying superannuation plan, in either or both of the financial years beginning on 1 July 2019 or 1 July 2020, because you satisfied:

 (i) a condition of release specified in item 107A or 207AA of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; or

 (ii) a condition of release specified in item 109AA of the table in Schedule 2 to the Retirement Savings Accounts Regulations 1997; and

 (d) the amount of the contribution is not more than the total of your COVID‑19 early release amounts; and

 (e) if you made one or more previous contributions covered by this section—the sum of:

 (i) the amount of the contribution; and

 (ii) the amounts of those previous contributions;

  is not more than the total of your COVID‑19 early release amounts; and

 (f) you choose, in accordance with subsection (2), to apply this section to the contribution.

 (2) To make a choice for the purposes of paragraph (1)(f), you must:

 (a) make the choice in the *approved form; and

 (b) give it to the *superannuation provider in relation to the *complying superannuation plan on or before the time when the contribution is made.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 May 2020

(57/20)

Senate on 31 August 2020]

 

 

Overview

The Treasury Laws Amendment (More Flexible Superannuation) Act 2021, enacted by the Parliament of Australia, aims to amend the law relating to taxation and enhance flexibility in superannuation arrangements. This Act responds to the need for more adaptable superannuation rules, particularly in light of economic disruptions such as the COVID-19 pandemic, by allowing individuals to manage their superannuation contributions more effectively. Key changes include the ability to bring forward non-concessional contributions, the modification of rules around excess concessional contributions, and provisions to facilitate the re-contribution of COVID-19 early release amounts into superannuation funds. The policy objective is to provide greater flexibility and control over superannuation contributions, aiding in financial resilience and retirement planning. The Act’s provisions commenced on various dates starting from the day of Royal Assent on 22 June 2021, with specific schedules taking effect from 1 July 2021.

Scope and Application

The Treasury Laws Amendment (More Flexible Superannuation) Act 2021 amends the law relating to taxation, specifically focusing on superannuation. This Act applies to the Income Tax Assessment Act 1997, Taxation Administration Act 1953, and the Superannuation (Excess Concessional Contributions Charge) Act 2013, introducing changes to the taxation of superannuation contributions. It allows for the bring forward of non-concessional contributions cap, addresses excess concessional contributions, and introduces provisions for the re-contribution of COVID-19 early release superannuation amounts. The amendments apply to contributions made on or after specified dates, such as 1 July 2020 for non-concessional contributions and 1 July 2021 for excess concessional contributions and COVID-19 re-contributions. The Act does not specify any exclusions or exemptions, but rather adjusts existing provisions and repeals certain sections and items related to superannuation taxation.

Key Provisions

The Treasury Laws Amendment (More Flexible Superannuation) Act 2021 (C2021A00045) is an Act that amends the law relating to taxation, specifically targeting superannuation. The primary amendments are encapsulated in three schedules, each addressing different aspects of superannuation flexibility and administration. Schedule 1 introduces changes to the non-concessional contributions cap, effectively increasing the cap from $65,000 to $67,000. This amendment applies to contributions made on or after 1 July 2020. Schedule 2 targets the handling of excess concessional contributions by repealing and modifying various sections of the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953. This includes the repeal of the Superannuation (Excess Concessional Contributions Charge) Act 2013 and modifications to how excess concessional contributions are treated, effective from financial years starting on or after 1 July 2021. Schedule 3 introduces provisions for the re-contribution of COVID-19 early release superannuation amounts, allowing individuals to re-contribute amounts withdrawn during the COVID-19 pandemic, provided certain conditions are met and the re-contribution is made within specified financial years. The Act imposes several obligations on the parties it governs, primarily those who are contributing to or managing superannuation funds. For instance, individuals must ensure that their non-concessional contributions do not exceed the amended cap of $67,000, and they must manage their concessional contributions to avoid excess contributions, which now require a written determination by the Commissioner if they occur. Additionally, those who have received COVID-19 early release amounts must adhere to the specific conditions and timeframes for re-contributing these amounts to their superannuation plans. The Act also requires superannuation providers to facilitate these re-contributions and comply with the new provisions. There are significant consequences for breaching the provisions of this Act. While specific penalties are not detailed in the provided text, breaches of superannuation laws typically result in penalties such as fines, additional taxes, and interest on unpaid amounts. The Act’s amendments could potentially lead to civil or criminal sanctions depending on the nature and severity of the breach. For instance, failing to comply with the new re-contribution rules for COVID-19 early release amounts could result in the individual losing their entitlement to claim deductions for those contributions. Given that superannuation is a critical component of retirement planning in Australia, compliance with these provisions is essential to avoid adverse financial and legal consequences.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Reporting & Disclosure Obligations
Exemptions & Exclusions

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.