POWERED BY MOMENTUM MEDIA
Tougher rules for releases to SMSFs
|
Major superannuation funds will be subjecting transfers to self-managed superannuation funds (SMSFs) to higher levels of scrutiny and checking, following new processes suggested by the Australian Prudential Regulation Authority (APRA) to help thwart illegal early releases.
APRA has signalled it will be writing to all superannuation fund trustees, providing them with guidance about the additional processes they should consider implementing to help verify the validity of transfer and rollover requests into SMSFs.
APRA said it had been working with the Australian Taxation Office to address concerns about the increasing prevalence of illegal early release of superannuation.
It said that it was doing so in circumstances where SMSFs were being used as a device to allow money to leave the superannuation system illegally.
APRA claimed there were two types of illegal early release schemes: one involving the fraudulent use of a member’s identification by an unrelated party to steam the member’s benefits without their knowledge or consent, and the other where a member participated with a promoter to access the member’s benefits.
It said that, to date, evidence indicated that the schemes preyed mostly on people from non-English speaking backgrounds, as well as others who had a limited understanding of the superannuation system or were under financial distress.
AUTHOR
Mike Taylor
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
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
