SMSF trustees can now have far greater confidence in their superannuation, both in the accumulation and pension phases, says the SMSF Professionals’ Association of Australia (SPAA).
SPAA CEO and Managing Director Andrea Slattery says the reassurances by Treasurer Joe Hockey and Assistant Treasurer Josh Frydenberg about the Government’s support for the key principles of superannuation, when coupled with increased surveillance of the SMSF sector by the ATO and ASIC, are all positive signs for trustees.
“The other critical element to assist in building consumer’s confidence that is emerging in our sector is the growth of the SMSF profession. Trustees have access to the quality advice they critically need.
“Certainly it is important at a time when the ATO is focusing on SMSFs to ensure they comply with the superannuation and tax laws that trustees get specialist advice.
“Such advice is particularly pertinent for funds that are in pension phase to ensure that trustees abide by the rules, especially as they relate to the minimum payment.
“It is important that trustees who are in pension phase comply with the tax and superannuation rules in order to retain the concessional tax treatment that these pensions receive.”
Superannuation pensions receive concessional tax treatment – the earnings on the underlying assets are tax free – to encourage people in retirement to draw down on their superannuation via a pension instead of taking a lump sum when they leave the workforce.
In order to access the tax concession, a minimum pension amount, depending on the recipient’s age and the balance of assets supporting the pension, must be drawn down each year.
Slattery says: “SMSF trustees that are unsure of the superannuation pension rules should seek to educate themselves about them as well as get specialist SMSF advice to help them meet their obligations.
“Meeting the relevant superannuation rules is an important part of running an SMSF and achieving a self-sufficient and self-managed retirement. Specialist SMSF advice can play an important role in assisting the trustees and retirees to have confidence that their decisions will achieve their desired outcomes in retirement.”
The SMSF Professionals’ Association of Australia (SPAA) is the authoritative voice for the self-managed superannuation fund (SMSF) sector. SPAA, which represents professionals providing a range of services across various disciplines in the complex area of SMSFs, is an advocate for the highest professional standards and competence to ensure SMSF trustees always receive the best possible advice.
Contact for interviews:
SPAA CEO/Managing Director
M: 0417 898 317
L: 03 9670 2047