In its submission to the Financial System Inquiry, the SMSF Professionals’ Association of Australia (SPAA) stated it ‘strongly supports’ the existing regulatory settings for SMSFs.
According to a statement from SPAA, the association's submission to the FSI stated that it supports the Australian Taxation Office's role as primary regulator of the SMSF sector.
In the submission, SPAA also raised the possibility of SMSFs participating in the financing of housing via instruments such as shared appreciation mortgages and shared equity arrangements.
The submission also stated that the SMSF sector plays a "significant role" in diversifying assets held in the superannuation sector, reducing systemtic risk in the broader Australian financial system.
SPAA said there is "no risk" to the financial system posed by SMSF borrowing and property investment, noting a "very low level" of limited recourse borrowing arrangements are held by trustees.
SPAA's Jordan George said the SMSF sector should be viewed as an important source of capital for future Australian investment, both public and private.
"Opening up direct infrastructure investment to SMSFs could assist SMSFs in managing longevity risks, while also funding Australia's future investment needs," Mr George said.
"Infrastructure investments act as an important investment class that offers a risk-return point between cash/fixed-interest and equity investments.
"SMSFs are currently limited in investing in infrastructure due to [a] high dollar threshold and the illiquid nature of investment.
"Unitising investment in infrastructure projects to small investments - say, for example, $25,000 - and developing secondary markets could overcome current barriers to investment by SMSFs in the sector," he said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all