SMSFA welcomes retirement income covenant

12 August 2021
| By Laura Dew |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 3 months ago
Kevin Gorman

Super director remuneration ...

1 year 3 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 3 months ago

Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predict...

4 hours ago

Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one ...

4 hours ago

Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns a...

4 hours 33 minutes ago

TOP PERFORMING FUNDS