SMSF Association

With the prospect of a recession in Australia still looming large, SMSF investors might take comfort in new research showing that while their sector underperformed APRA-regulated funds in a booming 2021, SMSFs weathered the last contractionary environment, in 2020, better than larger funds did.

Treasury’s plan would increase the headline tax rate to 30 per cent from 15 per cent for earnings on superannuation balances above $3 million. The SMSF Association and others have called it unsustainable and discriminatory to SMSFs.

The most important aspect of SMSF membership is commitment, SuperConcepts’ Graeme Colley told advisers at the SMSF Association’s National Conference, stressing that potential trustees’ prime consideration should be whether they have the time and energy required to run a successful fund.

Peter Burgess told the SMSF Association’s National Conference the industry group has pushed for some of the developments, while it continues to oppose others, such as a high-balance cap. The government now plans instead to double the tax rate for funds with very high balances.

Speaking at the SMSF Association’s National Conference, the assistant treasurer called out “modern-day Edmund Hillarys” seeking to raid Australia’s “Mount Everest of superannuation” as he pressed the need for an objective for super that prioritises preservation.

Despite a growth hiccup in 2022 the SMSF sector is trending in the right direction, with more younger people opting for choice in the way they manage their retirement savings.

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.

A key consideration for SMSF members is how their retirement will impact their fund’s investment strategy. To navigate these tricky waters, members must plan around long-term needs, and input from experts can help prevent costly mistakes, according to Accurium principal Melanie Dunn.

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 case law SMSF trustees should be sure to know about.

The regulator’s recent removal of a controversial $500,000 minimum-balance guidance for self-managed superannuation funds provides an opportunity to re-engage with lower-balance funds that have been steered away from SMSFs, the SMSF Association says.