Six member SMSF bill passes legislation

Legislation to allow an increase of maximum members in an SMSF from four to six has passed in parliament, despite a last-minute movement by the opposition to to review operation of the bill.

Assuming the bill receives royal assent, the change will take effect from 1 July this year.

According to SMSF Association chief executive John Maroney, the legislative amendment will provide “additional flexibility and choice” in the self-managed superannuation system.

“It may also lead to lower superannuation fees and could improve the ability to pool balances and invest in a greater choice of assets, as well as assist with estate planning,” Maroney said.

“Although the association does not believe there will be a significant number of SMSFs using this legislation, it will undoubtedly benefit some larger families.”

Labor party senator Jenny McAllister refused to back the bill late last week, citing concern about inadequate protections for consumers from “shonky” advisers.

“The people who will benefit most from these arrangements are financial advisers giving shonky advice, the kind of advice we’ve seen again, and again and again, the kind of advice exposed in the Hayne royal commission,” McAllister said.

Maroney acknowledged the concern, noting that specialist SMSF training would increase the level of expertise in the area.

“It has been the SMSF Association’s long-held policy position that SMSF advice should be underpinned by specialist education requirements,” Maroney said.