The current policy debate about allowing people to access their super to buy a house just highlights the lack of thought put into what superannuation is for. Legislation defining the purpose of super being to “substitute or supplement” the age pension is still before the Parliament. We have criticised this definition as being far too inadequate and unambitious. If the Government thinks people should be allowed to access their super to buy a house, it should put a hold on the legislation and re-open debate about what superannuation is supposed to be all about. SMSF Owners – 12 April 2017
2017 – SMSF Owners Confront a New Reality
The Governor General has signed the superannuation changes into law. The politicians have moved onto other things. The ATO is producing reams of guidance on how the new rules will work. Accountants, advisers, auditors, lawyers and valuers are bracing for a rush of work.
Meanwhile SMSF trustees are on a steep learning curve.
Read our comments on the new world facing SMSF trustees.
Read (pdf): As the super landscape changes, SMSFs must adapt
• The latest statistics from the ATO on self-managed super show that SMSF’s are still the largest slice of the superannuation pie, though growth compared to other sectors has slowed as contributions to the large APRA funds grow and as more SMSF owners reach retirement and start drawing a pension. Self managed fund balances remain comparatively high. You can check the stats at https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/Statistics/Annual-reports/
and here’s an easily readable summary from Phillip La Greca of Super Concepts published in Cuffelinks - https://cuffelinks.com.au/smsf-sector-numbers/
• As SMSF Owners digest the effect the new superannuation rules will have on them, more questions are arising about how it will all work in practice. Here we can direct you to the informative comments from SMSF adviser Monica Rule in the online newsletter Cuffelinks - https://cuffelinks.com.au/
SMSF Owners’ chairman Bruce Foy calls for members to rally against retrospective superannuation tax.
What We Are Telling The Government
We tell the Senate Economics Committee that legislation defining the objective of superannuation as to “substitute and supplement” the age pension is inadequate and lacks ambition. It positions superannuation in merely a supporting role for the age pension. It is a missed opportunity to position superannuation as the main plank of a comprehensive retirement incomes policy.
What We Are Telling The Media
Stopping SMSFs from borrowing will not solve the house price crisis and will hit small business.
What We Are Telling Our Members - see latest newsletter
SMSFs are back in the political firing line with Labor’s announced policy to ban borrowing by SMSFs. While this will affect a minority of SMSFs, it’s another attack on the ability of SMSF owners to manage their own retirement investment strategy.
Speaking Up For One Million Australians, just like you
New Super changes explained ...
This link will take you to a very useful summary in Heffron Super News about what the latest round of superannuation policy changes will mean in practice.
Get the SMSFOA Submission to Financial System Inquiry Final Report
Friends of SMSF Owners
Small Independent Superannuation Funds Association
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Leading Opinion on SMSF Issues
24 November 2016 – Jennifer Hewett, Australian Financial Review…A rare show of bipartisanship has broken out in Canberra. Unfortunately, it just means a big bipartisan mistake. But given the enormous long-term costs of that mistake will only become obvious many years hence, it's little wonder Scott Morrison and Kelly O'Dwyer are delighted their superannuation changes have passed the Parliament.
22 November 2016 – Professor Judith Sloan – The Australian …The drafting of the legislation is all over the shop, bringing in new accounting concepts never used previously in superannuation tax law and the deadlines are unworkable. The compliance costs for superannuants are immense, even for those who won’t be caught in the first instance.
25 October 2016 – Professor Judith Sloan – The Australian …. There is really no difference between the Gillard and Turnbull governments when it comes to implementing hasty and ill-judged policies and wasting money.
3 October – Robert Gottliebsen, The Australian Business Review.... The “ten million dollar club” of top Australian public servants has struck again by preserving most of the gold plating in their pension nest while the rest of Australia suffers benefit cut backs and/or extra taxes.
21 September 2016 – Robert Gottliebsen – The Australian…
Around the world public servants in collaboration with their actuarial mates have been misleading politicians about the real cost of the bonanza pension schemes they have been promised. Nowhere has the game been played better than in Australia.
17 September 2016 – Judith Sloan – The Australian…
The biggest take-home message is that the Coalition can never be trusted on superannuation. Its leaders say one thing and do another, trying to out-Labor the ALP when it comes to imposing higher taxes on savers who are seeking to provide for their retirement.
13 September 2016 – Rebecca Weisser – The Australian ...The government’s modelling shows everyone from the third income decile up — that is, 70 per cent of the population — is worse off under its new retirement system.
13 September 2016 – Professor Judith Sloan – The Australian ...Scott Morrison and Kelly O’Dwyer may well regret ever hearing the word superannuation. Having experienced a rush of blood to their heads and working on the basis of misleading and deceptive advice given to them by activist bureaucrats, they now find themselves in a right royal pickle.
How the super changes will work: ATO guidelines
The Australian Taxation Office publishes useful information on how the changes to superannuation from 1 July are intended to work.
If you are seeking more detailed information, the ATO has finalised a suite of Law Companion Guidelines to explain how the changes to superannuation from 1 July will work in practice. These are quite detailed and deal with the $1.6 million balance caps and Capital Gains Tax measures.
You can find a compilation of LCGs here:
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