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.”