The SMSF Association has hit back at the idea of a cap on superannuation balances, proposed by Assistant Treasurer Stephen Jones earlier this week.
Earlier this week, Jones stated the Government would be discussing high-balance self-managed superannuation funds (SMSFs) and the tax concessions available to them.
SMSF Association chief executive, John Maroney, said: “We do not and have never supported a cap on superannuation balances. The small number of SMSFs with extremely large balances are a legacy issue that the 2017 changes, which placed clear limits on contributions to superannuation funds and the amounts that can be held in the tax-free retirement phase, will remedy over time”.
He said any potential changes would need to be handled carefully to allow adequate time to manage the restructuring and not adversely affect the SMSFs with moderate balances.
If the proposal went ahead, he said the association would participate in any discussions on balance caps.
While the organisation was sceptical about imposing balance caps, it supported Jones’ second proposal that it would consult widely with the industry on an agreed objective for super.
“The Association has long supported the recommendation by the Financial System Inquiry to have an agreed common objective for superannuation, believing that if this foundation stone is put in place, then it will allow a far more productive conversation about the entire system, including balances.
“What must always be remembered is that constant changes to the superannuation tax settings erode confidence in the system and discourage members from making long-term savings plans.”
