Institute Submission - Phase Three: Structure (including SMSFs) on the Superannuation System Review

The Institute has lodged its submission to the Super System Review panel for Phase 3: Structure (including self-managed superannuation funds).

Key recommendations included:

• Accountants giving advice on SMSFs and superannuation should hold licensing as part of the current AFSL arrangements. However, the overall standards of RG 146 need to be raised and recognition needs to be given to the existing knowledge levels of Chartered Accountants and other qualified professionals within the AFSL regime.
• No mandating of investments (types or timing) should be allowed for SMSFs
• Institute competency requirements for members who audit SMSFs are appropriate and robust and consideration should be given to adopting them as part of an industry wide standard.
• Residential property should be included as an asset that can be purchased from a related party
• Leveraging in SMSFs should be allowed under strict parameters
• Retain number of members of SMSF at 4 except where an immediate family relationship exists between all members of the fund
• No minimum monetary balance to set up a SMSF
• A review of the penalty regime for SMSF trustees who breach their obligations to enable more appropriate penalties to be imposed.

Article last Updated 3 March 2011