The counsel for an online automated superannuation service provider has warned financial planners offering advice on self-managed superannuation funds (SMSFs) to review their clients’ trust deeds following changes to the superannuation regulations announced in this year’s Federal Budget.
Special superannuation counsel for SuperCentral, Michael Hallinan, said: “We expect that most trust deeds will need updating as a result of the changes, so the process of reviewing clients’ trust deeds should start now.”
Several amendments mooted in the Budget affect SMSF members directly such as the changed contribution rules and limits, and the removal of mandatory cashing rules for members over 65 years of age.
Furthermore, modifications such as spouse contribution splitting and transition to retirement pensions will require a review of trust deeds, according to Hallinan.
He warns the rigorous nature of the process should not be underestimated by advisers.
“This is a time-consuming task which will require advisers to contact all of their clients, locate the original deeds and amendments, check the impact of the changes on the deeds, explain them to their clients, then source a solicitor to effect the changes,” Hallinan said.
To this end, advisers using an automated system such as that offered by SuperCentral will find revising trust deeds easier and potentially more cost effective because the system updates the trust deed of funds on record immediately and automatically once the legislative changes have been passed.
