The Division 296 tax has dominated the SMSF sector and there’s no doubt the industry is suffering from legislation fatigue and is now taking advantage of the short reprieve over the holiday break to regroup and re-strategise in the hopes of slaying the monster in the new year.
The continued lobbying and behind-the-scenes work from the SMSF Association proved fundamental. Not only has the association been able to educate the politicians about the consequences of this controversial bill, its tireless campaigning has put SMSFs in front of the mainstream media like never before, generating a growing grassroots movement from the public.
Although it has been the most taxing fight for the sector, Div 296 wasn’t the only campaign the sector has embarked upon this year – and there have been many victories after years of crusading.
After more than five years the NALI/E legislation was finalised, albeit with some aspects still to be considered regarding their specific applications.
However, the end result was more than originally expected and offered much-longed for certainty to an issue that had been plaguing the industry for far too long.
The continued growth of the SMSF sector and reaching the milestone of more than $1 trillion in assets re-affirmed what many had predicted – that more Australians are wanting to take control of their retirement rather than leave it in the hands of the faceless funds which are being increasingly caught up in scandals and mis-management.
It seems as superannuation continues to accumulate massive amounts of our wealth, the general public is becoming more aware of the importance of knowing where their hard-earned future savings are going.
The passing of the legacy pension regulations was an unexpected end-of-year bonus for many. Again, it was an issue that had been languishing in the backrooms of Parliament and Treasury for way too long.
With an election looming in the first half of the new year, superannuation is set to become an important policy issue and it will be interesting to see how the major parties position themselves.
Whatever happens, 2025 is sure to be as frenetic as 2024 and the SMSF landscape will continue to evolve.
The SMSF Adviser team wishes everyone a happy and safe holiday season and thanks you for your support through 2024.
