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Issue 792, 4 February 2021 
In this issue: 


NSW property tax proposals: consultation 

The NSW Government is consulting on proposed reforms to its property tax arrangements. The reforms aim to make home ownership more affordable for consumers and may therefore have a beneficial impact on consumers’ overall retirement outcomes. The reforms also have the potential, in the longer term, to impact superannuation funds in their role as investors in property. 

The proposed reforms involve allowing eligible purchasers to choose between paying lump sum stamp duty and (where applicable) land tax or a new annual property tax: 

Submissions on the proposals may be made directly to NSW Treasury at by Monday 15 March. 


APRA policy and supervisory priorities 

APRA has released its policy and supervision priorities for 2021, with a key focus on further enhancing the resilience and crisis readiness of Australia’s financial system. 

APRA has indicated that its key policy priorities include: 

APRA’s priorities in relation to supervision include: 


Indexation of transfer balance cap 

The ATO has advised that the general transfer balance cap (TBC) will be indexed for the first time with effect from 1 July 2021, increasing from $1.6 million to $1.7 million. When that occurs, there will not be a single TBC that applies to all individuals – every individual will have their own personal TBC of between $1.6 and $1.7 million, depending on their circumstances. 

The TBC is a limit on the total amount of superannuation that can be transferred into the retirement phase. It was introduced with effect from 1 July 2017 at $1.6 million, with indexation tied to movements in the Consumer Price Index (CPI). 

The ATO has indicated that: 

The ATO has also noted that, from 1 July 2021, individuals will be able to view their personal TBC in ATO online. 

While annual superannuation thresholds and caps—including in relation to superannuation contributions—are indexed to movements in Average Weekly Ordinary Time Earnings (AWOTE) rather than CPI, the indexation of the general TBC will have flow on effects for some contributions. In particular, the ATO has noted that when the general TBC is indexed on 1 July 2021: 




ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.

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