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Government to increase self-managed super fund flexibility

Government to increase self-managed super fund flexibility

Managing your superannuation should be a little easier, thanks to an expansion of access supported by the Turnbull Government.

The maximum number of members in self-managed super funds (SMSF) will grow from four to six, and rolling over your existing superannuation funds into a self-managed fund will now be a much smoother process.

The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, believes that the change to the number of members in a SMSF will allow for “greater flexibility and, given the growth in the sector to date, will ensure SMSFs remain compelling retirement savings vehicles into the future.”

Who are the members of a SMSF?

SMSFs previously could only have up to four members, but these changes will allow up to six. According to ASIC’s MoneySmart, all members “must be trustees (or directors, if there is a corporate trustee) and are responsible for decisions made about the fund and compliance with relevant laws.”

SuperStream, the method by which business pay employee superannuation guarantee contributions to super funds, will be extended to include SMSF rollovers. This will allow SMSF members to “initiate and receive rollovers electronically between an APRA fund and their SMSF”.

“This will reduce compliance costs, expedite the rollover process and further improve the integrity of the super system,” said Minister O’Dwyer.

“I have asked the ATO to work with industry on the design and implementation of this important reform, which is expected to commence late next year,” said Minister O’Dwyer.

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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