In an article for the website SMSF Adviser, Miranda Brownlee writes that the proposal by industry stakeholders to minimize Super balance and enhance taxes is being slammed by the lobbyists of the SMSF sector.
Industry associations shouting hoarse
The industry associations have submitted their suggestions to the Tax paper but in the garb of suggestions all they have managed to do is bring their fear and apprehension about the superbly performing SMSF sector to the table. New spate of taxes will mean putting the customers’ savings in line but the industry associations are ready to take this step if it compromises the SMSF sector in any way.
SMSF sector sceptic about proposed changes
“Income-stream capital must not exceed $2.5 million in the pension phase” is the shout from the industry associations and this is no more than an attempt to create difficulties for the SMSF sector that has killed the level-playing field only through its strategies and vision. SMSF owners are also skeptical to the proposal which says that above a specific income level, money fished out of Super must come with a tax slab.
Promoting adequacy during retirement
Presently, the Super system is coherent and must only undergo changes when all the alternatives are explored. And for the record, says the article, overseas SMSF models have amply illustrated that the best way to approach SMSF (keeping the Sole Purpose Test in mind) is to let people accumulate during their working lives and tax it only during the end; a sure fire way of promoting adequacy.
You can read the original article here.
There is no dearth of proposals, guidelines and regulations like these floating in the SMSF sector. Talk to me today if you find something directly impacting you. I will be more than glad to advise or shed light on it.