Campaign launched to boost Senate support for 6-member SMSFs
With the government essentially left with two days to pass the six-member SMSF bill before the election, an SMSF services firm has launched a campaign to bolster support for the measure among non-Labor senators.
SMSF services firm I Love SMSF has launched a campaign this week aimed at boosting support from independent and Liberal senators for the bill to extend the number of SMSF members to six.
The firm has contacted accountants and advisers operating in the SMSF space, encouraging them to contact non-Labor SMSF senators and request their support on the measure.
I Love SMSF chief executive Grant Abbott said that there are two-member SMSFs who would like to have the option of bringing their children in their fund but are currently limited by the four-member rule.
“If [the bill] does not get through this week and an election is called, then don’t expect the Labor Party to support it as it runs counter to their desire to increase industry fund inflows to make them more powerful,” Mr Abbott said.
The government first introduced the six-member bill into Parliament in mid-February this year, after announcing the measure in the lead-up to the budget last year.
The bill was then referred to the Economics Legislation Committee, which has now reported back.
The committee has recommended that the bill to extend the SMSF member limit be passed, despite strong opposition to the measure from Labor senators.
Given that adding additional accumulation members to an SMSF could potentially reduce the impact of Labor’s changes to franking credits, SuperConcepts’ Peter Burgess previously said that the outcome of this bill could “emerge as an early test of support for Labor’s franking policy proposal”.
Mr Burgess said that the Liberal Party will need the support of the minor parties to get this particular measure through, which may still happen, particularly if the minor parties don’t support Labor’s policy to remove refundable franking credits.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.