POWERED BY MOMENTUM MEDIA
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.
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.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
