The federal government has announced it will propose to increase the limit on the maximum number of members in an SMSF from four to six.
Minister for Revenue and Financial Services Kelly O’Dwyer made the announcement at the inaugural SMSF Association SMSF Expo for trustees in Melbourne today and said it formed a part of the government’s upcoming budget next month.
“This change will allow for greater flexibility. And given the growth in the sector to date will ensure that SMSFs remain compelling retirement savings vehicles well into the future,” O’Dwyer told trustees.
SMSF Association chief executive John Maroney noted the significance of the announcement, saying the four member rule was introduced 20 years ago.
“There’s been ongoing discussions over those 20 years to enable more flexibility and more sustainability so we’re very pleased to hear that announcement from the minister today,” Maroney said.
O’Dwyer also announced the SuperStream system will be extended to include SMSF rollovers, which will allow members to initiate and receive rollovers electronically between an Australian Prudential Regulation Authority fund and the SMSF.
“I’ve asked the ATO to work with the industry in the design and the implementation of this important reform which is expected to commence later this year,” she said.
O’Dwyer also flagged no further reforms to the super system in the upcoming May budget.