The recent confirmation of the budget changes to superannuation law — and the increased funding for scrutiny of SMSFs — suggest that now is a suitable time for SMSF trustees and their advisors to review their funds. Any review should:
As announced in the federal Budget, the Government will introduce two contribution caps effective from 1 July 2007:
However, it is the increased levels of regulation that were surprising in the recent announcement.
To improve the regulation of SMSFs, the Government proposes to increase ATO funding by $112 million. The extra funds will be spent on a range of measures to strengthen the ATOs capacity to regulate the SMSF sector.
The Government has increased the funding because:
The measures proposed by the Government include:
Trustees of SMSFs and their advisors should be conscious of — and act on — these proposed changes and the prospect of tighter scrutiny by the ATO.
These changes and increased funding are part of the Government's "A Plan to Simplify and Streamline Superannuation‚?? Outcomes of Consultation" which was released on 5 September 2006, see www.simplersuper.treasury.gov.au
You can call Julian Smith at Maddocks on 03 9288 0555 for more information.
Paul is a Senior Associate in the Maddocks Commercial team with particular expertise in commercial agreements for the supply of goods and/or services, the Personal Property Securities Act 2009, the National Consumer Credit Protection Act 2009 and the National Credit Code and the Australian Consumer Law.
Paul's key areas of practice include:
Before joining Maddocks, Paul was employed for 13 years with the Victorian Department of Justice, principally as a Deputy Registrar in the Victorian Magistrate's Court, but also as a legislation, policy and project officer for the Department.
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For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of their team.