SMSFs expected to be spared from major changes in budget
While the government is unlikely to announce any particularly generous policies for super in the budget next year, the industry is also likely to avoid any negative changes with an election not far off, said an SMSF service firm.
Speaking to SMSF Adviser, Heffron managing director Meg Heffron said that with 2022 set to be an election year, SMSF advisers would be in a difficult environment, particularly given the uncertainty surrounding a number of previously announced measures for super.
“[If you look at] the contribution changes, the amnesty for legacy pensions, the changes to residency and all those measures announced in the budget, they are current government policy. Some of them have even been presented to Parliament, there’s legislation in the House of Representatives but [it’s unclear] whether they will be enough of a priority to be passed before an election or whether we’ll have a change in direction,” said Ms Heffron.
“It makes it difficult for advisers because they’re constantly having to think in almost two channels.”
Ms Heffron said given the current economic environment, there’s “not a lot of cash to splash around”, so it will be difficult for the government to be massively generous with super.
“Equally, I think it’s unlikely to be a terribly negative one for super, given that you just have to look at what happened to Labor last time when it looked like they were planning to attack franking credits and negative gearing,” she said.
In terms of the measures that are yet to be passed as law, Ms Heffron said SMSF professionals shouldn’t rely on them being passed.
“In which case, it’s probably a good time to focus on some of the normal housekeeping stuff that people often ignore but is so important such as making sure we’ve got a corporate trustee,” she said.
Ensuring things like binding death benefit nominations have been updated to reflect any change in circumstances is also important, she added.
“That change in circumstances may be within the fund. You might have started new pensions or put more contributions in and created an accumulation account. Or maybe you’ve updated your will and [you need to check] that lines up with your binding nomination.”
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
