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SMSF member increase bill reintroduced

The bill to increase the maximum number of self-managed superannuation (SMSF) members from four to six has been reintroduced in the Senate.

The bill amends the SIS Act, Corporations Act, ITAA 1997 and Superannuation (Unclaimed Money and Lost Members) Act 1999 and allows larger families to have one SMSF rather than several.

The explanatory memorandum for the bill said: "For families with more than four members, currently the only real options are to create two SMSFs (which would incur extra costs) or place their superannuation in a large fund."

The SMSF Association welcomed the changes to the maximum number of allowable members.

SMSF Association chief executive John Maroney said: "Although the number of funds that take advantage of this policy change may be small, the increased maximum has our support because it brings greater flexibility and choice to the SMSF sector."

It was first announced ahead of the 2018/19 budget and was introduced in the Treasury Laws Amendment (2019 Measures No. 1) Bill 2019 but was knocked back by Labor.

The bill was reintroduced this week by assistant minister for superannuation, financial services and financial technology Jane Hume.

The SMSF Association also welcomed the Your Super, Your Choice bill which passed last week allowing employees the choice about which fund receives their superannuation guarantee.

"It not only affected younger people but also older members transitioning to retirement who might have an SMSF. A typical scenario was for these people, working in part-time jobs under the umbrella of an enterprise agreement, being forced to have their SG paid into a default fund and not their SMSF. This was clearly inequitable," Maroney said.

Read more: SMSFSMSF AssociationJohn MaroneyJane HumeTreasury Laws Amendment
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