Senator Jane Hume has introduced Treasury Laws Amendment (Self-Managed Superannuation Funds) Bill 2020 into the Senate this week, which amends the SIS Act, Corporations Act, ITAA 1997 and Superannuation (Unclaimed Money and Lost Members) Act 1999 to increase the maximum number of allowable members in SMSFs from four to six.
The amendments will apply from the start of the first quarter that commences after the act receives royal assent.
The Coalition government first announced plans to extend the SMSF member limit in the lead-up to the 2018–19 federal budget.
Former Minister for Revenue and Financial Services Kelly O’Dwyer said the change would increase choice and flexibility for members.
The measure was previously introduced into Parliament as part of the Treasury Laws Amendment (2019 Measures No. 1) Bill 2019. However, with Labor opposed to the measure, the Liberal Party agreed to remove the amendment to increase the SMSF member limit in order to pass the other measures contained within the same bill.
The measure to increase the SMSF member limit has previously had mixed opinions, with some experts flagging the potential risks that additional members pose in terms of disputes between members and estate planning.
Other SMSF specialists have pointed out that increasing the number of members in an SMSF could raise the risk of members falling victim to elder abuse.
Other commentators in the SMSF industry have supported the measure as it provides larger families with the option of bringing their children into their fund.
This measure should have been introduced years go. SMSFs are more closely audited thank the big funds
Add your children as members to ones SMSF – one of the dumbest ideas I have heard yet.
Ms Hume / LNP, a very small positive. The take up of this will be tiny.
How about REDUCING THE STRANGULATION BY BS REGS ON ADVICE as a much better use of your time.