Author: Brenda Hutchinson, Partner, TAG Financial Services
It’s good news that the Federal Government has now announced they are still committed to expanding the allowable members in SMSFs from 4 to 6 members. This change was originally announced in the 2018/2019 Federal Budget with a projected start date of 1 July 2019. The change to the start date is a result of the shortened parliamentary sitting period in 2020 due to COVID-19.
Once this change is legislated, it will provide greater flexibility for large families and enable them to jointly manage their retirement savings
Younger family members will be able to contribute and assist SMSF’s where the majority / largest assets are illiquid (i.e. property) in meeting their ongoing obligations such as pension minimums needed for retired members, and potentially assist in retaining these illiquid assets in superannuation on a member’s death.
Trustees will need to ensure that concerns over control and investment preferences / timeframe are considered and managed. For example, where “mum and dad” are retired, and are suddenly outnumbered as trustees by their 4 children.
For more information, call us 03 9886 0800 or email us at super@tagfinancial.com.au.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2020. Please do not reproduce without the expressed written consent of the author.