SMSF Association 2018-19 Budget Submission
The SMSF Association welcomes the opportunity to make a pre-budget submission for the 2018-19 Federal Budget. As leaders of the SMSF sector, we believe the SMSF Association are able to offer insights on some key issues from the perspective of an industry that has grown to represent approximately $701 billion in assets and over 1.1 million SMSF members, becoming an integral part of Australia’s superannuation system and economy.
This year SMSF Association submission focuses primarily on improving the efficiency of the superannuation system.
After the introduction of the significant legislative changes which came into effect on 1 July 2017, it is essential that superannuation fund members continue to have a period of stability. The SMSF Association note the Government has stated they have no intent on any further changes to the superannuation rules in the foreseeable future.
In this submission the SMSF Association submit that the Government give ongoing consideration to how policy settings for superannuation and the age pension are integrated to ensure that efficient outcomes are delivered by the broader retirement income system. They believe that further consideration of this policy area is very much needed.
The SMSF Association also seeks action on Superannuation Guarantee (SG) reforms and believe that a recommitment to the increase in the SG rate to 12 per cent should be legislated to ensure retirement savings for individuals are adequate. This should be supplemented by reforms that allow individuals to choose which superannuation fund they want to receive their SG contributions and to prevent unscrupulous employers from using loopholes to avoid paying their full SG entitlements.
The SMSF Association also focus on how SMSFs can be an important source of funding for domestic infrastructure, social impact investment and commercialising innovation. Accessing SMSF capital to fund these important areas would support economic growth and also deliver improved retirement income outcomes for SMSFs.
The SMSF Association also seeks increased transparency regarding the SMSF levy and believe a review of the levy will ensure that SMSF trustee fees are used to regulate the sector in an efficient manner and for purposes which will improve the sector.
Additionally, the SMSF Association submission highlights significant red-tape issues impeding the superannuation system. The current restrictions facing SMSF members who reside outside of Australia and a host of technical amendments resulting from the introduction of the new super reforms on 1 July 2017, problems that could easily be resolved by Government through improved legislation.