POWERED BY MOMENTUM MEDIA
SMSF members reminded of dividend reform risk
As we head into the final week of the Federal election campaign, the Alliance for a Fairer Retirement System has again reminded consumers that Labor’s franking credit reform may not treat all superannuation fund members equally.
While the Alliance acknowledged there was a legitimate issue with whether franking credits were a withholding credit or a final company tax, the fact they “unfairly” targeted those with self-managed superannuation funds (SMSFs) wasn’t up for debate.
Professor Deborah Ralston, a retirement income expert and spokesperson for the alliance, said that if Labor’s rationale was that franking credits should only be allocated to members of super funds who give rise to a tax liability, then the policy should apply at the individual member level within all funds.
“Any changes to the tax treatment of franking credits should be applied equally irrespective of their superannuation structure,” she said. “Any proposal that puts the 1.1 million SMSF members at a disadvantage is not only discriminatory but removes an important element of competition from the superannuation system.”
Ralston pointed to the introduction of the $1.6 million transfer balance cap as an example of a policy change that applied to all superannuation fund members, rather than just those in SMSFs.
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(%)
