Minimum SMSF balance of $250,000 more accurate

SuperConcepts/SMSFs/self-managed-super-funds/ATO/natasha-fenech/productivity-commission/

14 January 2019
| By Hannah Wootton |
image
image image
expand image

As industry bodies such as SuperConcepts and the SMSF Association welcome the Productivity Commission’s revision of the minimum viability threshold for self-managed superannuation funds (SMSFs) to $500,000, the former has warned that it is still a misleadingly high figure.

The company believed that a minimum member balance of $250,000 was a more accurate measure of cost-effectiveness, which was closer to the guidance provided by the Australian Taxation Office.

“We’re concerned that the Productivity Commission report has potentially confused the market in distinguishing between a fund balance and a member balance for the minimum viability of an SMSF,” SuperConcepts chief executive, Natasha Fenech, said.

“The vast majority of funds have more than one member and this needs to be absolutely clear when issuing guidance and potential accountability to professionals about how much money makes an SMSF worthwhile.”

Fenech also endorsed the Commission’s call to have require specialist qualifications for SMSF advice.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 week 3 days ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies. ...

2 days 18 hours ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 5 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Powered by MOMENTUM MEDIA
moneymanagement logo