Self-Managed Superannuation Funds (SMSFs) have been confirmed as one of the biggest financial services winners from the Federal Budget, with the industry particularly welcoming the manner in which it appears to have cleared the way for dismantling legacy products.
The significance of the legacy move was recognised by Chartered Accountants Australia and New Zealand (CA ANZ) with its superannuation leader, Tony Negline, welcoming the measure which he said he been buried in the Budget papers.
“We welcome the ability to dismantle some older style legacy pensions that have been barnacles attached to our complicated superannuation system for many years,” Negline said.
“The Government will now permit market-linked, life expectancy and lifetime products to be demolished for a two-year period,” he said. “This will allow a small number of SMSF members to get out of products that outlived their usefulness more than 10 years ago.”
“CA ANZ along with the super industry have long advocated to Government for this solution and they should be congratulated for acting on this ongoing problem.
“We also welcome the relaxing the residency rules for SMSFs when fund members have temporarily moved overseas for work or family reasons. While this is a piecemeal approach to the complicated super problem our nation has, this flexibility is necessary and needed.”
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.