The Turnbull government has announced plans to expand the limit on the maximum number of members in a self-managed super fund (SMSF) from four to six, while also making it easier to roll existing funds into an SMSF as part of the SuperStream digital rollover process.
Speaking on Friday at the SMSF Expo, Minister for Revenue and Financial Services, Kelly O’Dwyer, said the changes would ensure SMSFs remain compelling retirement vehicles, while also reducing compliance costs, speeding up the rollover process and improving the integrity of the super system.
“I have asked the Australian Taxation Office to work with industry on the design and implementation of this important reform, which is expected to commence late next year,” she said.
The SMSF Association gave the move by the government its seal of approval, having lobbied for these changes for more than five years.
“Currently, family groups may need to have multiple SMSFs to accommodate more than four members, so this proposal will allow a single SMSF for the group, bringing the benefits of reduced costs and greater scale,” SMSF Association CEO John Maroney said.
Maroney said including SMSF rollovers in SuperStream was a significant improvement on the existing system.
“This change to the mechanics of the super system is important to SMSFs. Currently, SMSFs can experience lengthy delays in receiving rollovers from large superannuation funds, so this change will ensure rollovers are made in a timely manner, enhancing choice and efficiency in the superannuation system,” he said.