NEWS IN BRIEF
SMSFA calls for limit simplification The current confusion surrounding transfer balance caps (TBC) can be solved by aligning those of superannuation fund members with the general TBC, according to the SMSF Association (SMSFA), which has also called on the government to reduce the number of total super balance (TSB) thresholds. The SMSFA made the calls as part of its 2022/23 budget submission to Treasury, stating the simplification of TBCs was its primary recommendation to government after the introduction of indexation on 1 July 2021 added greater complexity to the superannuation system. The submission stated that aligning superannuants’ TBC with the general TBC would provide certainty while reducing costs for funds and members and simplifying the administration required by the ATO, financial advisers, SMSF administrators and fund members. In calling for the simplification of TSB limits, the SMSFA submission recommended the removal of the $1 million TSB threshold for transfer balance account reporting, the removal of the $1.48 million and $1.59 million TSB bring-forward non-concessional contribution thresholds and aligning the disregarded small fund assets threshold to the general TBC.
SMSF members most satisfied SMSF have been ranked the highest for member satisfaction compared to all other types of funds in 2021, according to statistics released by Roy Morgan. The market research company’s latest “Superannuation Satisfaction Report” revealed SMSF customer satisfaction
significantly increased in the 12 months to December 2021. “Despite [satisfaction levels rising for all fund categories] it is self-managed super funds which still lead the way with a customer satisfaction rating of 80.1 per cent, up 8.5 percentage points on a year ago, ahead of public sector funds just behind in second place on 77.7 per cent, up 3.9 percentage points,” Roy Morgan chief executive Michele Levine said. The report, which was based on responses from 20,900 Australians with superannuation, noted the stock market’s strong performance over the past 18 months had supported the growth of customer satisfaction regarding industry funds, which reached a new high in 2021. The period covered by the report was the six months from July 2021 to December 2021, which had been impacted by extended lockdowns across the nation and significant financial support schemes being implemented.
New insolvency laws affect sector Following the federal government’s decision to change the insolvency legislation framework, the ATO has warned SMSFs with a corporate trustee may be disqualified where they have been involved in an insolvency event. In a website update, the regulator noted the government’s changes included a new debt restructuring process and a simplified liquidation process for eligible incorporated small businesses through the appointment of a restructuring practitioner. These changes also led to amendments to the Superannuation Industry (Supervision) Act, which commenced from 8 December 2021, and the creation of a new category of disqualified persons, which could impact SMSFs with a corporate trustee. “This new category applies when a restructuring practitioner is appointed in
an insolvency event. This will trigger the disqualification of a corporate trustee of a superannuation entity, including an SMSF, from managing a superannuation entity,” the ATO stated. “If your SMSF has a corporate trustee, and a restructuring practitioner is appointed, the company will no longer be able to act as the corporate trustee as it is disqualified. You need to notify us of the disqualification as soon as practicable.”
Class CEO departs Class has announced chief executive Andrew Russell has decided to depart his position on 16 February, the same date the scheme of arrangement for Hub24’s acquisition of the SMSF administration provider will be implemented. According to Class, Russell and the boards of the two companies agreed that with Class becoming a part of Hub24 following its acquisition, the time was right for him to step down. Russell has been in the role since May 2019 and will act as an adviser to Hub24 until 31 March, while Hub24 director of strategic development Jason Entwistle has been appointed interim chief executive and managing director of Class, reporting to Hub24 chief executive Andrew Alcock. Class chairman Matthew Quinn thanked Russell for his work at Class, noting he was a “talented chief executive and a transformational leader”. Russell said it had been a privilege to work for a driven organisation, which is expected to grow following Hub24’s acquisition. Hub24’s plans to purchase Class, first announced under a scheme of arrangement in October 2021, received approval in the Supreme Court of New South Wales on 4 February 2021, allowing the group to acquire all Class shares.
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