COMPLIANCE
Where to from here for ECPI
Changes to the way exempt current pension income is calculated are pending, but the industry does not seem to be in total agreement on the final method that should be implemented. Mark Ellem reveals the surprising sentiment practitioners have expressed on the subject.
MARK ELLEM is head of education at Accurium.
28 selfmanagedsuper
The proposed changes to the exempt current pension income (ECPI) rules are slated to come into effect from 1 July 2021, after being delayed 12 months from an original implementation date of 1 July 2020. With no draft legislation released by mid-April, it’s possible there will be a further delay to the start date. These latest proposals are intended to reduce complexity. However, some commentators have noted they have the potential to do the exact opposite. Whatever changes are proposed, the industry is hopeful sufficient consultation time is provided to ensure that firstly, they achieve a
reduction in complexity and secondly, service providers have adequate time to make any necessary changes to administration platforms and processes to implement changes. Given the current implementation date is just around the corner, it is very possible a further delay of 12 months, until 1 July 2022, could occur. There is also the possibility after nearly four years of application of the current ECPI approach, the federal government deems the proposals are not required and they are withdrawn, resulting in a continuation of the status quo.
