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Off-market transaction ban is poor policy, says SPAA
The ban on off-market transactions for self-managed superannuation funds (SMSFs) in the Stronger Super changes has come as a disappointment to the Self-Managed Super Fund Professionals' Association (SPAA).
Under the measures announced by the Government yesterday, all off-market transactions between SMSFs and related parties must be conducted on market, where a ready market exists. The change has been put in place in an attempt by the Government to remove the possibility of trustees manipulating capital gains tax or excess contribution tax.
While she was generally pleased with the content of the Government's announcement, SPAA chief executive Andrea Slattery said the new requirement for related party transactions would not remove the potential for manipulation.
"We note that APRA-regulated funds can still conduct off-market transfers and nominate a transfer date. The ban on off-market transfers for SMSFs places the SMSF sector at a significant disadvantage compared to other super funds," she said.
One measure in the package that the SPAA was pleased with related to auditor independence. The Government has adopted the recommendation that the independence requirements imposed by the Australian Professional and Ethical Standards Board under APES 110 are appropriate for SMSF auditors.
"We are very pleased about the approach taken to auditor independence which is sensible, workable, and a significant improvement on the more prescriptive approach recommended by the Cooper Review," Slattery said.
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