The Federal Budget – What is there for Self Managed Super Funds?

Much commentary has come after the announced Federal Budget.

Here are some excerpts –

Impact of the Federal Budget for SMSFs

Aaron Dunn gives a great summary of the key changes –

For self-managed super funds and the superannuation industry, it was a budget that certainly won’t bring any front-page new stories, good or bad (and that’s probably a good thing!).

Federal budget snubs DIY super « Smart Property Investment SPIonline
The federal government has missed a golden opportunity to support property investment through self-managed super funds in its 2011 budget, according to Chan & Naylor.

The SMSF industry was largely ignored in the federal budget bar an unwelcome 20 per cent ($30) increase to the annual levy charged to fund trustees to $180.

Chan & Naylor director Ken Raiss said that while the increase in the levy was small in dollar terms it was huge in percentage terms and just another road block in an already over-regulated industry.

“The levy has gone from $45 to $180 in four years! That’s a 400 per cent increase,” Mr Raiss told Smart Property Investment.

SMSF caps ‘unworkable’: ASMA Super Review
The Australian Self-Managed Super Fund Members Association (ASMA) has labelled the Government’s Budget initiatives for concessional contributions caps ‘unworkable’ and likely to ‘drive up costs’.

ASMA director Anna Carrabs said the cost of implementing the changes – such as increasing the concessional cap limits for over-50s with balances less than $500,000 and allowing refunds for excessive concessional contributions up to $10,000 – far outweighed any benefits.

Superannuation changes ‘fall short of a solution’ The Australian
CHANGES to superannuation in the budget have not gone far enough in taking the pressure off retirees and superannuation investors, the industry said yesterday.

Also, the changes were potentially complex and key details were lacking on how they would work. Industry members said limited moves announced in the budget to ease the pressure on people who have inadvertently made excess concessional contributions to their superannuation did not address the extent of the problem.

They argued the budget move to increase the minimum drawdown for superannuation pensions put unfair pressure on retirees at a time of financial market uncertainty.

Andrea Slattery, the chief executive of the Self-Managed Super Fund Professionals’ Association, said the budget had begun to address the problem where people who had inadvertently put in excess superannuation contributions were unfairly penalised with a tax rate of as high as 93 per cent.

Aaron Dunn perhaps sums it up well when he comments:

“…pleased to see that some of my wish-list for change actually occurred within the budget.  Like all things, the devil will be in the detail once we see draft legislation.  Given that the Government is still talking about measures relating to Fairer Super from last year’s budget, I wonder if we could be waiting a while?”


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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