The passing of the legislation to give effect to the increase in the maximum number of self-managed superannuation fund (SMSF) members from four to six is a step closer following the Senate Economics Legislation Committee’s recommendation that the bill be passed.
The committee tabled its report this week after the bill was referred for inquiry on 3 September, 2020.
John Maroney, SMSF Association chief executive, said it was at its strongest indication of passing given that the committee was comprised of members of the major and minor parties.
“In our submission, which was referenced by the inquiry, we said increasing the maximum number of SMSF members from four to six would provide additional flexibility and choice in the superannuation system for those in a position to use it,” Maroney said.
“We also said this measure may lead to lower superannuation fees and could improve the ability to pool balances and invest in a greater choice of assets. So, we are pleased the Committee has recommended that this bill be passed.”
However, it was not clear when the bill would be passed as there were only 12 sitting days remaining before the end of the calendar year, despite Parliament resuming this week.
“It is possible this bill could be debated and passed by both houses before the end of this month, but with the Government having a full legislative agenda, it’s also possible this bill may not be passed by both houses until the new year,” Maroney said.
Once passed, the increase in the maximum number of SMSF members from four to six would apply from the first day of the first quarter after the bill receives Royal Assent.
The Australian Labor Party Senators on the committee recommended the Government should act on the Productivity Commission’s recommendation and require providers of SMSF advice to have completed specialist SMSF training.
“We acknowledge the concerns raised by the Labor Senators in their dissenting report,” Maroney said.
“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.”