Every time there’s a financial implosion triggering a claim on the Compensation Scheme of Last Resort, it’s the innocent left picking up the pieces. Even the Financial Services Minister Daniel Mulino has conceded as much, adding further weight to the push to make the scheme more equitable.
Illegal access to SMSFs by their trustees is one of those issues with a radar signature starting to pulse, but while it must be addressed, it should not overshadow the sector’s health.
The association has hit back at spurious claims from the Treasurer that the government conducted “heaps of consultation” on its proposed tax for super balances over $3 million.
Transfer Balance Caps, Super Balance Thresholds and the rules overseeing the notice of intent to claim a tax deduction are all overly complex and could do with immediate simplification, according to SMSF Association CEO Peter Burgess.
The government’s plan to increase taxes on super balances above $3 million will have a costly impact on the SMSF sector, with thousands of members likely to face liquidity stress, according to new research from the University of Adelaide’s International Centre for Financial Services.
A principled approach to advice regulation is clearly the way forward for advisers, Neil Sparks says. But what’s missing in the discussion is how beneficial the Quality of Advice Review output will also be for consumers.
With new data showing offshore share investments comprise just 2 percent of total self-managed superannuation fund assets in Australia, advisers are warning SMSFs against overreliance on domestic shares and cash and urging diversification.
With almost $600 million worth of SMSF assets held in art – up 54 per cent since 2016 – the original alternative investment is seeing a significant resurgence in popularity.
The test allows investors who can certify that they earn $250,000 a year or have more than $2.5 million in net assets to access higher-risk securities normally off-limits to individuals. But many say the test is confusing and outdated, and an independent statutory body has called for an update.
While the move to tax superannuation balances above $3 million at a higher rate would affect only a handful of people at first, if the threshold is not indexed to inflation, future generations may be turned off from investing in their super, industry leaders say.
The federal government plans to use part of the $4.2 billion projected budget surplus to provide cost-of-living relief for Australian households and small businesses. It’s also moving forward with controversial plans to change tax concessions for the superannuation industry.
The SMSF adviser took an unusual path to joining the profession, one that involved almost a decade playing rugby on the hot sand and gravel of Saudi Arabia.
The likely ‘double-bump’ transfer balance cap increase to $1.9 million will exacerbate what is already an “overly complex” indexation rule that advisers have to navigate and explain to clients, the SMSF Association’s Fabian Bussoletti says.
Litigation involving estate planning and superannuation is ramping up, with major impacts on self-managed super funds, and in particular trustee obligations. Cooper Grace Ward partner Hayley Mitchell discusses key recent case law and what it means for estate planning and SMSF management.
After the regulator abandoned its $500K minimum balance guidance, the SMSF Association says it hopes licensees will reconsider some of the concerns they may have had about low-balance funds.
