SMSF Association Media Note
SMSF Association CEO John Maroney says: “We do not and have never supported a cap on superannuation balances. The small number of SMSFs with extremely large balances are a legacy issue that the 2017 changes, which placed clear limits on contributions to superannuation funds and the amounts that can be held in the tax-free retirement phase, will remedy over time.
“It’s also our position that if there is a decision to restrict the retention of extremely large balances in superannuation, then needs to be handled carefully to ensure that any rule changes allow adequate time to manage the restructuring that would be involved, especially where large illiquid assets are involved. It also must not adversely affect the vast majority of SMSFs with moderate balances.
“We did suggest in 2020 that the Retirement Income Review examine the issue of extremely large balances, but deliberately did not recommend where that line should be drawn.”
Maroney notes the mooted change to impose a cap on superannuation balances conflicts with previous statements by the then Shadow Treasurer, Jim Chalmers, that “Labor will not introduce any new superannuation taxes or balance caps if it forms Government after the upcoming Federal election.”
“But if the Government has decided to have this conversation about balance caps, then it is one the
Association and its members will actively participate in.
“In this vein we strongly support the announcement by the Assistant Treasurer, Stephen Jones, that Labor “will consult widely to inform a common, agreed objective for superannuation. Australians need to have their say. With an objective that is settled, we can talk sensibly about tax.”
“The Association has long supported the recommendation by the Financial System Inquiry to have an agreed common objective for superannuation, believing that if this foundation stone is put in place,
then it will allow a far more productive conversation about the entire system, including balances.
“What must always be remembered is that constant changes to the superannuation tax settings erode confidence in the system and discourage members from making long-term savings plans.”