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Push for more cross-border super transfers will benefit members
The SMSF Association (SMSFA) has called for the Federal Government to address a raft of 'red-tape' issues in superannuation that would have no negative revenue effects including clarifying the wholesale investor test, creating greater cross-border super portability and allowing financial advice to be tax deductible.
The proposals were made in a pre-budget submission released by the SMSF Association (formerly SPAA) which stated there was confusion as to what constituted a wholesale investor and what counted towards the assets that were to be held by those considered wholesale investors.
The association proposed this area be clarified under the relevant section of the Corporations Act 2001 stating that it would require a legislative fix as the Australian Securities and Investments Commission (ASIC) had indicated it was not in a position to change the regulations or provide further guidance in this area.
SMSFA also put forward a number of proposals dealing with superannuants from and superannuation funds operating in other countries stating the Federal Government should expand the Trans-Tasman portability scheme to include self-managed super funds.
It stated their exclusion resulted in a third of the superannuation sector being unable to be part of the scheme and reduces its effectiveness and undermines choice in the superannuation system.
SMSFA also urged the Government to consider allowing pension transfers from the UK into Australian superannuation funds to fall outside the current non-concessional contribution cap rules. It stated that by doing so fund members would avoid paying high rates of tax on the pension transfer in the UK claiming these taxes undermined the process and purpose of allowing UK pension holders to move retirement income to Australia.
The submission also renewed calls for initial ad ongoing financial advice and certain advice relating to superannuation, offered only by licensed financial advisers, to be made tax deductible with such action representing a Government contribution to improving the affordability of financial advice.
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
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