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Regulation, Superannuation

Government committed to aiding SMSF sector

Jane Hume; SMSF; audit cycle

The newly returned coalition government has confirmed its commitment to helping the SMSF sector succeed but has not revealed its plans for the three year audit cycle.

Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume has confirmed the newly elected coalition government’s commitment to supporting the SMSF sector but has remained coy on plans for the three year audit cycle.

“The government has a demonstrated commitment to nurturing the development of the self-managed super sector. We want to make it easier for those who are actively engaged in the management of their retirement savings to maximise their returns, while maintaining compliance and minimising red tape,” Hume said at the SMSF + Investor Expo hosted by the SMSF Association in Melbourne last week.

In endorsing the sector, she highlighted the Productivity Commission’s (PC) opinion of the role SMSFs play within the greater superannuation system.

“With specific reference to self-managed super funds, the PC found that SMSFs add to the competitive nature of the superannuation industry. In other words, all super members benefit from the presence of SMSFs and they provide a competitive pressure that helps to keep big funds in check,” she said.

With regard to policy, she confirmed the much-debated three-year audit cycle for SMSFs was still under consideration.

“The government has undertaken extensive public consultation on this measure and the outcomes of the consultation are currently being considered,” she said.

She expressed disappointment the move to increase the maximum members for an SMSF from four to six had not received bipartisan support and had been excluded from the Treasury Laws Amendment (2019 Measures No 1) Bill 2019, but added the initiative was still a government objective.

This would have enabled families with up to four children to be part of a single family super fund. It remains government policy to enact this important change and it will be progressed in line with the government’s legislative priorities,” she said.

During her speech, she announced the government would not be looking at amending the superannuation taxation rules as part of its planned review of the efficiency of the current Australian retirement savings system.

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