Retirement
Senate committee gives 6-member SMSF bill green light
The Senate economics legislation committee has recommended that the six-member SMSF bill be passed, despite concerns from Labor that it may lead to “perverse outcomes” for SMSF members.
Senate committee gives 6-member SMSF bill green light
The Senate economics legislation committee has recommended that the six-member SMSF bill be passed, despite concerns from Labor that it may lead to “perverse outcomes” for SMSF members.
In early September, the government reintroduced its measure to increase the number of members allowed in an SMSF to six, when it introduced Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 into the Senate.
On 3 September 2020, the Senate referred the bill to the economics legislation committee for inquiry and report by 4 November 2020.
While the committee acknowledged in the report there were differing views towards the bill, it stated that most submissions were supportive of the bill.
“Some submitters suggested that there is not a significant demand for increasing the maximum number of SMSF members in a fund and hence no need for the amendments to be made.
“While noting these views, the committee considers most objections to be more general in nature rather than significant concerns,” the report stated.
In its report, the committee noted that the SMSF sector has seen considerable growth since the 1990s and now represents approximately one-third of Australia’s total $2.76 trillion retirement funds.
“Recognising the obvious benefit to Australians, particularly families who number more than four members and manage their own superannuation, the committee sees efficiencies in the bill’s amendments,” the report said.
“As such, the committee is of the view that families should have the option to establish a single SMSF together if they wish to, thereby reducing administrative costs.”
The report noted concerns by Labor senators that the “legislation could bring about greater perverse outcomes for members of SMSFs through poor financial advice”.
The Labor senators recommended that the Senate oppose the bill and that the government consider adopting the reforms recommended by the Productivity Commission to create stronger safeguards on SMSF advice.
“More broadly, systemic reform is needed to ensure people have access to independent advice,” they said.
RELATED ARTICLES
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more
