The SMSF Association is confident the bill increasing the formation of six member SMSFs will be passed into legislation after the Senate Economics Legislation Committee recommended this course of action.
“Given the committee comprised members of the major and minor parties, it was the strongest indication yet that this measure should be passed by the parliament,” SMSF Association chief executive John Maroney said.
Maroney pointed out the committee had referenced the industry body’s submission on the matter, which advocated allowing SMSFs to increase the maximum number of members from four to six because it would provide greater flexibility and potentially broaden the appeal of these types of funds to people in a position to use them.
“We also said this measure may lead to lower superannuation fees and could improve the ability to pool balances and invest in a greater choice of assets. So we are pleased the committee has recommended that this bill be passed,” he said.
At the same time, he acknowledged the calls to follow the Productivity Commission’s recommendation that only practitioners who have completed specialist SMSF training be permitted to provide advice regarding these types of funds.
“It has been the SMSF Association’s long-held policy position that SMSF advice should be underpinned by specialist education requirements, and it has been pleasing to see the number of advisers completing the SMSF Association’s SMSF Specialist Advisor Accreditation program increasing in recent times,” he noted.
While optimistic the bill will be passed, he warned people not to expect this would necessarily occur in 2020 as there are only 12 parliamentary sitting days remaining this calendar year.
“It is possible this bill could be debated and passed by both houses before the end of this month, but with the government having a full legislative agenda, it’s also possible this bill may not be passed by both houses until the new year,” he said.
The Senate committee’s recommendation that the bill be passed was handed down last week. Once passed, the legislation will come into effect from the first day of the first quarter after the bill has received royal assent.
