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.”
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
Add new comment