The federal opposition’s proposal to abolish cash refunds for excess imputation credits often claimed by super funds will not only affect its intended target of SMSFs, but will hit all 12 million superannuants in Australia, the Self-managed Independent Superannuation Funds Association (SISFA) has warned.

The yardstick of “genuine hardship” to secure the early release of superannuation benefits is not being met and needs tougher controls, according to the SMSF Association.