The SMSF Association remains “resolutely opposed” to a cap on superannuation balances which has been proposed by Labor.
Earlier in the week financial services minister Stephen Jones spoke at the AFR Super and Wealth Summit, indicating reforms to high super balances was on the table.
“We have 32 self-managed super funds with more than $100 million in assets,” Jones said at the summit. “The largest self-managed super fund has over $400 million in assets.”
Current rules allow balances with over $1.7 million to still receive the 15 per cent concessional tax rate on earnings.
“We do not and have never supported a cap on superannuation balances,” SMSF CEO John Maroney said.
“It’s also our position that if there is a decision to restrict the retention of extremely large balances in superannuation, then that needs to be handled carefully to ensure any rule changes allow adequate time to manage the restructuring that would be involved, especially where large illiquid assets are involved.”
Maroney notes the mooted change to impose a cap on superannuation balances conflicts with previous statements by the then-Shadow Treasurer Jim Chalmers.
“But if the Government has decided to have this conversation about balance caps, then it is one the Association and its members will actively participate in,” Maroney said.
“In this vein we strongly support the announcement by the Assistant Treasurer, Stephen Jones, that Labor will consult widely to inform a common, agreed objective for superannuation. Australians need to have their say. With an objective that is settled, we can talk sensibly about tax.”