In an article for the website SMSF Adviser, Katarina Taurian talks about how the Federal Government has stayed true to its pre-election promise and not made any harmful alteration to the Superannuation structure. Jordan George, Senior Manager of the SMSF Association (technical and policy) feels that the government’s stance of keeping things unchanged only proves that we are stable enough to survive without making changes.
Government stood true to its pre-election promise
There was widespread speculation that the government would use the pretext of the budget to work on the recommendations of the Financial System Inquiry. This could have meant borrowing-bans via the Limited Recourse Borrowing Arrangement. However, the situation has not transpired and speculations remain just that.
For now, there won’t be any changes in the Super structure
While Superannuation sat on the periphery in this Federal Budget, there is every chance, feel industry pundits that Superannuation will take centrestage as the next Federal elections come near.
You can read the original article here.
Treasurer’s take
Treasurer Joe Hockey feels that while it was possible to throw off ‘Superannuation’ from the discussing table for another 6 months, there was an urgent need to reform the tax structure at the earliest. Already, there is a huge pressure on the health and the pension system and higher life expectancy means that the status quo can’t be kept alive for long. On a different note, Mr. Hockey faced a lot of brickbats for suggesting that the Super fund be used for first home purchase.
What is your opinion about Limited Recourse Borrowing Arrangement being used for SMSF lending?
