Regulation, Superannuation

Significant victories for SMSFA in 2018

The SMSF Association has reflected favourably upon its advocacy activity in 2018, nominating the changes to the work test exemption as it most significant achievement in this area.

“There’s no better example of what the association has achieved this year than the simplified work test exemption regulations that were introduced by the government on 7 December,” SMSF Association chief executive John Maroney said.

“Our recommendation that individuals should be allowed to use the exemption in the year they turn 65 to access bring-forward arrangements rather than being excluded by complex legislation was accepted.

“By removing this complexity, it now allows individuals to access all their existing superannuation contribution limits as is the practice now.”

In all, the industry body made 50 submissions to the government and a variety of regulatory bodies, including the Financial Adviser Standards and Ethics Authority (FASEA), Productivity Commission and banking and financial services royal commission.

Notable topics covered included encouraging the implementation of digital rollovers with a carveout for SMSFs that only have non-concessional contributions, ensuring limited recourse borrowing arrangement total superannuation balance changes were targeted, encouraging the Productivity Commission to review its position on inefficient SMSF balances, the exclusion of SMSFs from the design and distribution obligations and the royal commission, and increasing the maximum number of members allowed in an SMSF from four to six.

With regard to FASEA, Maroney pointed out the association’s advocacy work had contributed toward a reduction in the required continuing professional development hours, examination obligations and more appropriate education standards.

“We hope our final round of submissions will provide further results for limited licence advisers, relevant degrees and the recognition of the specialist SMSF adviser designation,” he said.

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