The Small Independent Superannuation Funds Association (SISFA) has welcomed news of an urgent review of excess contribution penalties as announced earlier this week by the Assistant Treasurer, Bill Shorten.
However, it stated it would like clarity on the issue before 30 June in order to allow self-managed superannuation fund (SMSF) investors to take action this financial year.
Despite this, SISFA urged SMSF practitioners to take immediate actions to prepare for a positive outcome from the review.
These actions included keeping a record of clients that have inadvertently exceeded contribution limits to discuss with the Australian Taxation Office when it is anticipated more sensible rules apply.
Also, it said to review contribution levels now of vulnerable clients who have chased maximum contributions and, where possible, unwind any excess contributions before 30 June.
SISFA director Andrew Cullinan urged members to raise any issues that should be covered by this review with the association as soon as possible.
“A quick response by the regulators to this urgent review should meant that practitioners and their SMSF trustee clients should have clarity over this contribution issue before 30 June to allow people to safely contribute for their retirement,” he said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
Add new comment