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Budget a ‘good news’ story for SMSFs
After speculation that super tax concessions would be on the chopping block, this year’s federal Budget has proven to be good news for the SMSF sector.
The federal government kept its pre-election promise by not making any detrimental changes to superannuation in its first term.
“I think this shows that we have some stability in superannuation at the moment when it comes to tax and regulatory changes,” the SMSF Association’s senior manager for technical and policy, Jordan George, told SMSF Adviser.
Mr George noted that limited recourse borrowing arrangements (LRBAs) were not touched on, despite some speculation the government would use the Budget to address the Financial System Inquiry’s recommendation to ban borrowing in super.
Also speaking to SMSF Adviser, Taxpayers Australia’s head of superannuation, Reece Agland, said that while superannuation was a “no-show” in this year’s Budget, changes will be on the cards as the next federal election approaches.
“At least they’re not tinkering with super to fill budget gaps, so that’s a positive. In that sense, no news is good news for the super sector,” Mr Agland said.
Its great if you have under $450,000 in the fund, or well over $1.2 million. But for the rest, just watch how Scott Morrison's new Pension Trap will hollow a lot of these SMSFs out in the near future. The top up Centrelink Age Pension [forgone] is just too attractive.0
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