POWERED BY MOMENTUM MEDIA
SMSF Association calls for no cap on balances
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.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
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.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
