Self-Managed Superannuation Funds (SMSFs) have been confirmed as one of the biggest financial services winners from the Federal Budget, with the industry particularly welcoming the manner in which it appears to have cleared the way for dismantling legacy products.
The significance of the legacy move was recognised by Chartered Accountants Australia and New Zealand (CA ANZ) with its superannuation leader, Tony Negline, welcoming the measure which he said he been buried in the Budget papers.
“We welcome the ability to dismantle some older style legacy pensions that have been barnacles attached to our complicated superannuation system for many years,” Negline said.
“The Government will now permit market-linked, life expectancy and lifetime products to be demolished for a two-year period,” he said. “This will allow a small number of SMSF members to get out of products that outlived their usefulness more than 10 years ago.”
“CA ANZ along with the super industry have long advocated to Government for this solution and they should be congratulated for acting on this ongoing problem.
“We also welcome the relaxing the residency rules for SMSFs when fund members have temporarily moved overseas for work or family reasons. While this is a piecemeal approach to the complicated super problem our nation has, this flexibility is necessary and needed.”
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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