Super Fund changes finally arrive
After eleven months of uncertainty, financial advisers now have a clearer indi-cation as to how the changes to the investment rules for superannuation funds, announced in the 1998 Federal Budget, may be implemented.
This follows the release of the exposure draft of the Superannuation Legisla-tion Amendment Bill (No. 4) 1999 at the end of April.
According to Deutsche Bank director Stephen Manassah, most of the changes an-nounced were in line with what industry was expecting - except for the on
After eleven months of uncertainty, financial advisers now have a clearer indi-cation as to how the changes to the investment rules for superannuation funds, announced in the 1998 Federal Budget, may be implemented.
This follows the release of the exposure draft of the Superannuation Legisla-tion Amendment Bill (No. 4) 1999 at the end of April.
According to Deutsche Bank director Stephen Manassah, most of the changes an-nounced were in line with what industry was expecting - except for the one sur-prise.
This is a concession to small funds where the 40 per cent limit on the ability to acquire "business real assets" from members or relatives will be extended so that 100 per cent of assets can be acquired from related parties.
"This will be a positive change for small business owners who have superannua-tion funds holding assets, and particularly those in rural areas," Manassah says.
"They will now be able to have their fund acquire additional assets that fall within the definition."
He says a self-managed superannuation fund's capacity to invest in associated entities has been restricted, as expected.
However, the grandfathering arrangements announced shortly after the 1998 Fed-eral budget applying to existing investments in associated entities have been preserved.
The Federal government has given until June 3 for submissions to be made on the draft legislation.
* Super changes unveiled p20
Ends
Recommended for you
ASIC has warned licensees are demonstrating an “acceptance for internal non-compliance” when it comes to the reportable situations regime as a review finds a licensee took 12 years to commence an investigation into a breach.
The advice industry has broadly welcomed the legislative groundwork surrounding the latest set of financial advice reforms, although they note “the devil’s in the details”.
Centrepoint Alliance has formally launched its investment and superannuation platform IconiQ, in association with technology firm FNZ, as it looks to tap into the $1.1 trillion platform market.
AMP has launched household consolidated reporting across multiple clients to North Interactive in response to adviser feedback.
