While the exact composition of the 46th Australian Parliament is yet to be determined, Scott Morrison’s surprise election success offers the attractive prospect of 3 years of stable government.
Having been described even by his political foes as deserving a place in the ‘Liberal pantheon’, it is welcome relief to anticipate a government focused on longer term policy priorities rather than short term leadership skirmishes. Clearly investors have reacted positively to the Coalition win, with a strong rally in banking and other stocks on the first trading day after the surprise result.
Here are some of the other expected implications, particularly for self-managed super fund (SMSF) investors:
- No change to the treatment of refundable franking credits
- No reduction in contribution caps and other superannuation concessions
- Implementation of super measures announced in previous federal budgets which had not been passed by the parliament at the time the election was called, including the new Superannuation Guarantee opt-out rules for high incoming earnings individuals with multiple employers
- Re-emergence of the Government’s proposal to increase the maximum number of SMSF members from 4 to 6.
- Introduction of 3 yearly audit cycles for some SMSF
As always, we look forward to helping you traverse the legislative landscape to make the most of all your opportunities.