POWERED BY MOMENTUM MEDIA
Minimum SMSF balance of $250,000 more accurate
As industry bodies such as SuperConcepts and the SMSF Association welcome the Productivity Commission’s revision of the minimum viability threshold for self-managed superannuation funds (SMSFs) to $500,000, the former has warned that it is still a misleadingly high figure.
The company believed that a minimum member balance of $250,000 was a more accurate measure of cost-effectiveness, which was closer to the guidance provided by the Australian Taxation Office.
“We’re concerned that the Productivity Commission report has potentially confused the market in distinguishing between a fund balance and a member balance for the minimum viability of an SMSF,” SuperConcepts chief executive, Natasha Fenech, said.
“The vast majority of funds have more than one member and this needs to be absolutely clear when issuing guidance and potential accountability to professionals about how much money makes an SMSF worthwhile.”
Fenech also endorsed the Commission’s call to have require specialist qualifications for SMSF advice.
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
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
