University of Adelaide

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.

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.

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.