News in brief

SMSFA CEO to depart

SMSF Association chief executive John Maroney has announced he will depart the organisation in early 2023 after nearly six years in the role.

Maroney will be stepping down after the industry body’s 2023 National Conference, which is scheduled to take place in February next year.

He will be succeeded by association deputy chief executive and director of policy and education Peter Burgess, who will take on the chief executive position from March 2023.

Maroney, who has been chief executive since May 2017, said: “Having weathered the COVID storm and returned to hosting large, physical events, including the National Conference in April and Technical Summit [in July], 2023 is the ideal time to hand over to Peter for the next growth phase of the sector and association.”

Burgess, who rejoined the body in May 2020, after having previously held the role of technical director from 2010 to 2013, confirmed his commitment to servicing the association’s members in the future.

“I look forward to working with the board and members to achieve this outcome,” he said.

Dixon clients urged to contact AFCA

Former clients of Dixon Advisory and Superannuation Services Pty Ltd have been advised to make a complaint as soon as possible to the Australian Financial Complaints Authority (AFCA) to ensure they may be eligible for possible compensation in the future.

In a website update, the Australian Securities and Investments Commission (ASIC) said it will soon write to former Dixon Advisory clients to inform them a complaint can be made to AFCA if a loss has occurred and it may make them eligible for recompense if a compensation scheme of last resort is established.

“If [previous clients] believe they have suffered loss as a result of the misconduct of Dixon Advisory and/or their former Dixon Advisory financial adviser in providing financial advice, they should make a complaint to the Australian Financial Complaints Authority,” the corporate watchdog said.

“As complaints may only be made against firms who are members of AFCA, complaints against Dixon Advisory should be made as soon as possible. If Dixon Advisory’s AFCA membership ceases, then no further complaints can be accepted.”

NALE an industrywide issue

The entire superannuation industry and not just the SMSF sector is now seeking a practical solution to the non-arm’s-length expenditure (NALE) rules as the severity of the associated penalties is being better understood.

The matter that is causing angst for superannuation funds across the board relates to the provisions around general expenses and how a discount on administrative services has the potential to trigger the NALE provisions, which will in turn have all of the income of the retirement savings vehicle taxed at 45 per cent.

Industry funds now realise the NALE rules could be applied to their operations as many of them outsource their administrative requirements in order to access cheaper rates.

“So they are caught under these provisions and it means all of the income that the fund receives, including all the SG (superannuation guarantee) contributions they receive from their millions of members, will be taxed at 45 per cent,” SMSF Association deputy chief executive and director of policy and education Peter Burgess said.

The situation was ranked as the number one superannuation industry issue at a recent meeting between the ATO and the industry associations.

Downsizer age limit dropped

The federal government has introduced legislation to further reduce the eligibility age to make downsizer contributions from 60 to 55, less than two months after changes reducing the age from 65 to 60 commenced.

The change is included as part of Treasury Laws Amendment (2022 Measures No 2) Bill 2022, which was introduced into the House of Representatives on 3 August by Assistant Treasurer and Minister for Financial Services Stephen Jones.

Stephen Jones

In the second reading for the bill, Jones said “this modest change in the eligibility age for the downsizer program complements the government’s comprehensive plan on housing to improve access and affordability”.

“This measure will increase the availability of suitable housing for growing Australian families by encouraging more older Australians to downsize to homes that better meet their needs,” Jones said.

The explanatory memorandum to the bill notes the amendments will also require contribution acceptance rules in the Superannuation Industry (Supervision) Regulations 1994 and Retirement Savings Account Regulations 1997 to ensure downsizer contributions can be accepted by regulated superannuation funds and retirement savings account institutions for individuals aged 55 and over.