POWERED BY MOMENTUM MEDIA
SMSFs on outer on income streams
The Federal Government has clearly signalled that self managed superannuation funds (SMSFs) will not be included in new rules enabling superannuation funds to provide a greater range of income stream type products.
The Assistant Treasurer, Josh Frydenberg made the status of SMSFs under the proposed new arrangements clear in his address to the Tax Institute when he outlined progress with respect to the Treasury's Income Streams Review.
He said the aim was to provide more flexibility for innovation and to allow industry to develop the type of products that might form part of retirement income streams in the future.
"At present, only a very limited range of annuities qualify for the tax exemption on assets supporting retirement income products," Frydenberg said.
"Under the proposed new rules, concessional tax treatment would be extended to a wider range of products."
The Assistant Treasurer said Treasury had been working closely with stakeholders on a proposal for a new alternate set of rules and the Government would consider the results of this, with a view to announcing a package of changes later this year.
"While the details have yet to be finalised, at this stage it is not envisaged that SMSFs would be able to provide products under the proposed new rules," Frydenberg said.
"These changes will lay the groundwork for opening up new products along the lines envisaged in the Final Report of the Financial System Inquiry."
Recommended for you
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.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
62.62 3 y p.a(%)
3
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.95 3 y p.a(%)
4
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
5
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
Add new comment