Don't exclude SMSFs from trans-Tasman super
Australian self-managed superannuation funds (SMSFs) should be able to receive superannuation transfers from New Zealand, according to the SMSF Professionals' Association of Australia (SPAA).
SPAA chief executive Andrea Slattery described as counter-productive and discriminatory proposals to exclude SMSFs from the proposed Australia and New Zealand superannuation accord.
"This restriction as to where New Zealand-sourced retirement savings can be directed in Australia is unneeded and unwarranted," she said.
"It is especially unwarranted in light of a review of 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."
Slattery said the suitability of SMSFs as a destination for New Zealand-sourced retirement savings was strengthened by the compliance-based regulation undertaken by the Australian Taxation Office (ATO).
She said she was concerned that the exclusion of SMSFs would result in about one-third of the superannuation industry being unable to be part of the trans-Tasman portability scheme.
"This could significantly reduce the effectiveness of the measure, with more and more Australians choosing SMSFs as their preferred savings vehicle to fund their retirement," Slattery said.
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