Many regulatory changes are lined up in the SMSF sector for the year 2015. They are many positive developments and potential challenges lying ahead, too. Only recently, the Financial System Inquiry has deemed fit to recommend that the borrowing structure for the limited recourse SMSF loans must be changed.
Financial System Inquiry
This proposal has not been greeted kindly by the SMSF world. In my opinion, there might be some need to alter the legislative framework related to borrowing but the entity shall remain in place if the post-retirement need of SMSF members have to be met (something which the Baby Boomers are finding themselves woefully short of).
440 SMSF auditors in the red
The Australian Securities and Investments Commission has revoked the registration of 440 SMSF auditors citing incompetence. This is another development that might just have had its root in the year gone by; it is expected to take wings in the year 2015.
Taxation White Papers
Taxation White Papers is another issue the present year will have to deal with, albeit later in the year. Moreover, these papers will apply equally across the Superannuation industry. It is a myth that special tax leniency is granted to the SMSF sector and that they can indulge in dividend franking at will. Such myths need to be busted. Every Super entity has equal opportunity; it is just that the SMSFs so far have managed their taxation limitation better than the industry funds.
There is also talk about putting in independent directors (majority) on the trustee boards. How this pans out will interest us in coming months.
What major developments do you foresee in the year 2015 in the SMSF sector?