Minimum SMSF balance of $250,000 more accurate
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.
Recommended for you
The corporate regulator’s crackdown on SMSF auditor misconduct continued in the third quarter, with ASIC taking action against 11 auditors who were all referred by the Australian Taxation Office.
A Perth adviser who stole over $1 million from his clients has received a jail sentence in Perth District Court today, with the judge reprimanding his lack of remorse for the crime.
Financial advisers are being urged to expand their skills with specialist SMSF training as the volume of assets held in SMSFs reaches $876 billion.
The firm has announced revenue growth of almost 30 per cent to $33.7 million in its annual results and will be seeking to reach $100 million by 2030, doubling its previous target.
