Govt canvasses including SMSFs in Retirement Income Covenant
The Federal Government is canvassing including self-managed superannuation funds (SMSFs) in the retirement income covenant.
A new discussion paper released by the Federal Treasury has canvassed the inclusion of SMSFs in the covenant and has asked what approaches might be taken and what barriers need to be removed.
The discussion paper points out that self-managed superannuation fund trustees face the same challenges as large superannuation funds in terms of complex risks and decisions.
“SMSFs constitute a significant component of the superannuation pool, making up 26% of all superannuation assets at 1.1 million members as at June 2022.15,” it said.
“While SMSF members are encouraged to consider their long-term retirement income requirements, they do not receive the same entitlement to support that members of APRA-regulated funds receive under the retirement income covenant. There is no safeguard that they will receive an equivalent level of guidance, risk management, or retirement income product solutions.”
“In addition, SMSFs may face unique challenges in retirement, including a need for exit planning in the event of the member-trustee becoming unable to manage the fund at older ages or due to the death of a member of the fund who undertook management responsibilities.”
Red Tape, Red Tape, Red Tape, lets add some more Red Tape.
Canberra govt & bureaucrats are world leading manufactures of useless Red Tape.
No wonder productivity is dead, strangled to death by Govt & Bureaucratic Red Tape.
so this is how it begins – the slow regulation death of SMSF’s
Industry super wants nothing more than for the SMSF sector to be re-distributed to them. This is fk’ing terrible.
I run my own SMSF and I don’t want or need anyone from APRA ‘helping’ me out. I’m doing very well also managing my own SMSF so my message to the Govt is
fk off and leave my super alone.
Do you donate as much to the ALP as industry super does? If not I don’t think you will get your wish.
if trustees of SMSF wanted APRA to be involved they wouldn’t be in a SMSF. Its been ticking along great since the nineties, hence their popularity. OUR SMSF industry is the envy of the world, why ruin it?
why ruin it you ask? Probably because our regulators don’t appear to do anything that requires them to exhibit a common sense approach!!
Will we see regulation creep towards SMSF’s. Industry Super or government want the funds to be distributed back to Industry Super. The government then gets industry super to support its social projects, as evident from the other article today where industry super are looking for tax incentives to invest in energy transition.
Which will purposefully exclude the Gen4 nuclear solution as Albo is on record as saying “over my dead body” and Chris ‘clueless’ Bowen has said “duh”…
More rubbish out of Canberra.