I am still uncertain whether SMSF pensioners (NOT age pensioners who receive another pension from a SMSF) will be exempted if already in pension mode by 19 March. It appears not if the following is a correct interpretation of Labor policy.
From a March 27 2018 article by Luke, SMSF Media Pty Ltd 2018.
“
SMSF Association says Labor’s policy “still falling short”
The SMSF Association says the changed policy is a step in the right direction but still unfairly disadvantages over one million people, including many SMSF members.
SMSF Association CEO John Maroney said that while it was right that Age Pensioners be exempted, the Association still has “serious reservations” about the effectiveness and fairness of Labor’s policy.
“The amended policy excludes similar protection to self-funded retirees, many of whom draw their retirement income from retirement savings built over the lifetime in an SMSF to avoid relying on government support,” Maroney
said.
“The refunding of excess company tax paid via refundable franking credits has been a long-standing feature of superannuation that SMSF members have built their retirement strategies around.”
“Under Labor’s proposal, the only SMSFs exempt are those that currently have at least one member receiving the Age Pension. And in the future, there will be no protection for SMSF retirees who may need part government support to supplement their superannuation income, creating an unfair, two-tiered and complex treatment of SMSF members who access the Age Pension in retirement.”
Maroney said the Pensioner Guarantee exacerbates the effect of Labor’s policy on SMSF members, potentially leaving them worse off under the changes than people who have less savings, but receive refundable franking credits and a part pension.
The SMSF Association is urging the ALP to reconsider the entire policy, because of its “deleterious effects” on future retirement incomes.