The not-for-profits flourished when their members were in the accumulation phase. It’s a different story now as increasing numbers want a more personalised service as the decumulation phase beckons. If they can’t get it, SMSFs are a tantalising option.
SMSFs endured years of being accused of having high fees that cost their members’ balances dearly. Not only was it false, but now APRA fund members have revealed a deep ignorance of just what fees they’re paying and what it’s costing them. Quite clearly, their funds are failing to tell them the full story.
At its kindest, the big end of town sees SMSF investors as enthusiastic amateurs. Not so, says a research report, with the data showing that these funds are demonstrating a maturing investment acumen by using ETFs to access overseas equity, bond and property markets.
When Labor first introduced its legislation to increase the tax burden on 80,000 superannuants, it seemed plain sailing. Now, with opposition spreading across the community to small businesses, farmers, retired judges, public servants and venture capitalists, its passage through the Parliament is looking increasingly unlikely.
Labor’s proposal to tax earnings on super balances above $3 million gave the Greens the perfect opportunity to accuse SMSFs of being property centric. Pity the facts don’t support their argument.
In the 2019 federal election, Labor’s proposal to abolish cash refunds for excess franking credits went down like a lead balloon. So, will the $3 million cap proposal see Labor revisit history?
From their inception, SMSFs have always attracted more than their fair share of criticism. Now it’s an ageing membership that’s being used to restrict their numbers.
