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The government has issued draft regulations that will amend the transfer balance cap provisions to ensure that a member with a capped defined benefit income stream is not adversely impacted if they move to a new fund under a successor fund transfer.


Under current legislation, a member’s transfer balance may be unintentionally impacted due to the original income stream ceasing and a new one beginning.


The draft legislation would amend the transfer balance credit provisions so that the credit and debit arising due to a successor fund transfer for individuals with a capped defined benefit income stream are equal. This would ensure the amounts cancel each other out and the member’s transfer balance account is not impacted by the successor fund transfer.


The amendments would apply to successor fund transfers occurring from the day after registration of the regulations, but would also apply retrospectively to successor fund transfers from 1 July 2017 where the member was disadvantaged by the current rules.


The Minister for Aged Care has issued a media release regarding a delay in the commencement date of the new Aged Care Act which was proposed to commence on 1 July 2024.


In the media release, the Minister states ‘The Government is now considering the extensive and valuable feedback to refine and finalise the draft legislation before it is introduced to Parliament.


We will update the commencement date of the legislation following these updates and before the bill is introduced to the Parliament.’


While the new commencement date is yet to be announced, there is speculation it may be 1 July 2025.


The government has issued a commencement proclamation for changes to the First Home Super Saver (FHSS) scheme.


The changes to the FHSS scheme are aimed at improving access to the scheme and received royal assent on 20 Sept 2023, see Treasury Laws Amendment (2023 Measures No. 3) Act 2023, Schedule 4.


The commencement date of these reforms has now been confirmed as 15 Sept 2024.


For more information on the reforms, see the FirstTech article FHSS scheme flexibility Changes pass parliament, yet to commence

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