POWERED BY MOMENTUM MEDIA
SMSFA welcomes retirement income covenant
The SMSF Association has welcomed the introduction of the retirement income covenant but say it must not create administrative burden or added costs.
Responding to a position paper from Treasury, the association said it welcomed the move to increase member engagement and help members plan for their retirement.
However, it wanted Treasury to ensure any measures implemented were practical and fit for purpose and consideration was given regarding the size of self-managed superannuation (SMSFs) compared to large super funds.
Chief executive, John Maroney, said he was also aware of the changes that had been implemented in the investment covenant and that these should be heeded with the retirement income one.
“For SMSF trustees there does appear to be an element of overlap between the proposed retirement income covenant and the investment strategy covenant on investment composition and risk and having to address some of these concepts separately may cause confusion or duplication,” Maroney said.
“We appreciate the policy intent, but are of the view, that including, for example, the longevity and risk consideration alongside a robust investment strategy, could accomplish this objective.”
A further problem related to auditors and whether the covenant would mean they would now have an extra role in auditing a trustee’s compliance with the covenant.
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
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
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(%)
