Crack appears in SLAB
A peak accounting body has come out against a major amendment to su-perannuation rules currently before federal parliament.
A peak accounting body has come out against a major amendment to su-perannuation rules currently before federal parliament.
The Superannuation Legislation Amendment Bill (No. 4) 1999 (SLAB 4) is designed to limit the risks to superannuation savings and ensure super is preserved for retirement income. The amendment was flagged in last year's federal budget.
But the Australian Society of Certified Practising Accountants has condemned the bill, saying it will establish new investment restric-tions on super funds, including more than 170,000 small super funds.
"The Bill creates major problems for DIY funds and is nearly impossi-ble for the regulators to enforce," says CPAs Superannuation Centre of Excellence chair Murray Wyatt.
He acknowledges there has been some concessions by government, but says the bill creates a complex web of rules that will stop legiti-mate investments.
"The original May 1998 budget night announcement was a nightmare," he says.
"While this bill delivers some concessions to small business, farmers and people with pre-budget arrangements, it still remains an unneces-sary piece of legislation."
Wyatt says the bill is worrying because it gives the regulator the discretion to exempt large super funds from the rules.
AUTHOR
Jason Spits
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