Knowledge, Experience, Integrity

Financial Planning News

Budget will hit 15% of SMSFs

According to BGL Corporate Solutions analysis of firms representing some 60,000 SMSFs.

 

After conducting an analysis of the proposed budget changes based on anonymous data from 1,200 administration firms representing 60,000 SMSFs, BGL has predicted the budget changes could affect 85,000 SMSFs or 160,000 SMSF members.

Based on the data, the proposed $1.6 million pension cap will affect at least 15 per cent of SMSFs, which is significantly higher than the 4 per cent figure suggested in the budget.

"However, Labor’s proposal of $75,000 tax-free income for pension accounts is significantly more onerous," said BGL.

Based on the average returns of SMSFs from 2010 to 2014, BGL said this equates to a cap of $1.1 million and will affect at least 136,000 funds or 24 per cent of all SMSFs.

BGL believes the proposed lifetime cap of $500,000 for non-concessional contributions will affect at least 10 per cent of SMSFs or 56,000 funds with 106,000 members at 30 September 2015.

The amount of non-concessional contributions a fund has made is still difficult to calculate, because the data has often not been available or provided to superannuation administrators, BGL said.

BGL Corporate Solutions chief executive Ron Lesh said he has seen a lot of anger directed at the "ridiculous impractical superannuation policies from both sides of politics".

"Many people are disillusioned with their superannuation. They feel the proposed superannuation policies of all the major parties are simply unfair to people who have worked all their lives to build retirement savings," said Mr Lesh.


STAFF REPORTER
Wednesday, 18 May 2016 
accountantsdaily.com.au

Taxation rulings and documentation search

eWombat is a targeted search engine that only searches websites relevant to financial planners and accountants. A great resource to search for tax rulings, human services documents, etc.

Look up stock prices

What you need to know

The intention of this website is to provide general information only and it has been created for this purpose. In preparing the website, we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this website to particular circumstances. Robertson de Rooy & Associates does not guarantee the accuracy, reliability or security of the content within this site, which may change at any time without notice.