POWERED BY MOMENTUM MEDIA
Maximum SMSF members moves up to 6
Self-managed superannuation funds (SMSFs) will be allowed to have six members from 1 July, 2021 if the bill receives Royal Assent by 30 June, as the Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 passed the senate on Thursday.
The passage of the bill amended the Superannuation Industry (Supervision) Act 1993 to allow SMSFs and small Australian Prudential Regulation Authority (APRA) funds that had four members, the original maximum, to increase to six members.
SMSF Association chief executive, John Maroney, said the association welcomed the measure and said this change would provide additional flexibility and choice in the super system.
“It may also lead to lower superannuation fees and could improve the ability to pool balances and invest in a greater choice of assets, as well as assist with estate planning,” he said.
“Although the association does not believe there will be a significant number of SMSFs using this legislation, it will undoubtedly benefit some larger families.”
Maroney also pointed to an amendment of the bill by the Opposition to review the operation of the bill, including the conduct of financial advisers, SMSF trustees and SMSF investment performance and governance in 12 months, was narrowly defeated.
“It has been the SMSF Association’s long-held policy position that SMSF advice should be underpinned by specialist education requirements, and it has been pleasing to see the number of advisers completing the SMSF Association’s SMSF Specialist Advisor Accreditation program increasing in recent times,” he said.
The association also said it welcomed the bill that would extend the non-concessional contribution bring-forward rules to those aged 65 and 66.
“The extension of the non-concessional contribution bring-forward rules provides much needed certainty and greater flexibility for individuals in this cohort to make voluntary superannuation contributions,” Maroney said.
“The Your Future, Your Super Bill will give superannuation members greater visibility over their funds’ investment performance and encourage higher levels of member engagement. We also support measures that reduce costs by eliminating unnecessary duplicate super accounts.”
Recommended for you
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment