The capital gains tax (CGT) relief provisions in the superannuation reforms are unnecessarily complex and should have applied to all pension funds, according to an SMSF administrator.

The SMSF Association has criticised a federal government proposal to make amendments to legislation in relation to limited recourse borrowing arrangements (LRBA).

A lack of coordination exists between superannuation policy and social security policy, and the poor alignment between the age pension and superannuation is an example of this, according to the SMSF Association.

Treasury has released a consultation paper covering two key super tax measures – limited recourse borrowing arrangements (LRBA) and non-arm’s-length income (NALI) – to support the integrity of the federal government’s suite of super reforms.

Changes to the asset test rules for the age pension have had “significantly adverse and presumably unintended consequences” and dissuade middle-income wage earners from saving, according to the SMSF Association.

Revenue and Financial Services Minister Kelly O’Dwyer has announced Treasury will review the rules controlling the early release of superannuation on severe financial hardship and compassionate grounds.

Many advised and unadvised SMSFs as well as adviser groups remain in the dark on the requirements around the incoming Markets in Financial Instruments Directive (MiFID II) regulatory regime, including being unaware of what a legal entity identifier (LEI) is.

Parliament has legislated the downsizing measure that will allow older Australians to contribute the proceeds of the sale of their family home to super, and the First Home Super Saver Scheme (FHSSS) where first-home buyers can save for a deposit inside their super fund.