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.”
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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