SMSFs will be put at a ‘severe disadvantage’ due to a proposed exclusion of New Zealand-sourced retirement funds into Australian SMSFs, argues the SPAA.
It is both “discriminatory and counter-productive”, SPAA has said.
SPAA has made a formal submission to the Federal Treasury opposing the exclusion of SMSF
s, arguing it puts SMSF
s at a “severe disadvantage” compared with APRA-regulated funds.
“This restriction as to where New Zealand-sourced retirement savings can be directed in Australia is unneeded and unwarranted,” said SPAA CEO Andrea Slattery.
“It is especially unwarranted in light of the review into the governance, efficiency, structure and operation of Australia’s superannuation system (the Cooper Review) findings that the SMSF
sector was ‘largely a successful and well‐functioning part of the system’ and did not recommend any significant changes to the operation or regulation of SMSF
“Although SPAA is aware that the findings of the Cooper Review regarding SMSF
s may have been unavailable at the time the Memorandum of Understanding was negotiated with New Zealand, these finding are now available to the Government and as such SMSF
s should not be excluded as a possible destination for New Zealand-sourced retirement savings.”