SMSF Association welcomes SMSF member increase bill

The SMSF Association has welcomed the introduction of a bill that will increase the maximum number of allowable members in a self-managed superannuation fund.

The bill was first announced in the 2018/19 Federal Budget and would see the maximum number of members increase from four to six.

Chief executive of the SMSF Association, John Maroney, said the change would bring ‘greater flexibility’ although he was hesitant how many funds would activate the change.

“Although the number of funds that take advantage of this policy change may be small, the increased maximum has our support because it brings greater flexibility and choice to the SMSF sector,” he said.

The association also welcomed legislation in the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 which would give individuals the right to choose their own super fund.

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Passed by Senate in this sitting period, it would give employees free choice over which fund receives their compulsory super payment.

Maroney said the change would particularly helpful in encouraging members to engage with their super again.

“It’s always been our policy position that giving employees the right to choose their own fund is an important element in promoting an efficient and competitive superannuation sector.

“The situation where employees were constrained in their choice of fund had, in our opinion, a negative effect by disengaging people from their superannuation, reducing competition, and increasing the proliferation of superannuation accounts.”