POWERED BY MOMENTUM MEDIA
(June-2004) SMSFs gain breathing space
People operating self-managed superannuation funds affected by the recent Budget measure cracking down on defined benefits arrangements have been granted some breathing room, with the Federal Government in early June agreeing to review and clarify the initiative.
The Government met with industry representatives in early June to address concerns following the Budget night decision which was perceived to be targeting arrangements that avoid limits applying to tax concessions and social security means tests.
The Assistant Treasurer, Senator Helen Coonan, says the talks with the industry were constructive and highlighted the need for more certainty surrounding the grandfathering provisions in the integrity regulations gazetted after the Budget.
“Both the Australian Taxation Office and the Australian Prudential Regulation Authority have committed to issuing clarifications that outline the conditions of the grandfathering arrangements for those currently offering lifetime and life expectancy pensions in their do-it-yourself funds,” she says.
“The Government also recognises there may be some transitional issues that affect people who want to retire and provide a complying pension in their DIY fund before September 20, when the new market-linked pension product will become available,” Coonan says.
She says she has committed to examining an interim solution for people who may not be able to obtain a complying pension and can’t access the higher reasonable benefit limit in the fund, pending a new market-linked product coming on stream.
“While it is important that the integrity of the superannuation system is enhanced, it must not unfairly impinge on people who are genuinely trying to do the right thing and effectively plan for their retirement within the rules,” Coonan says.
AUTHOR
Mike Taylor
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
