Super news for November 2022

Objective for superannuation to be legislated

The Albanese Government has announced it will legislate an objective for superannuation, something it says is necessary to advance the discussion around the concessional taxation of large self-managed super funds (SMSFs).

“No other foundational public policy has existed for thirty years without a clear and shared understanding of its objective,” Assistant Treasurer and Minister for Financial Services Stephen Jones told the AFR Super & Wealth Summit.

“There are many opinions on how the super system should be improved. Many of these opinions are well-meaning. But how can we have a conversation about the directions if we don’t know the destination?

“This is why we have announced that we will legislate an objective of super,” Jones said.

He pointed out that there are currently 32 SMSFs with more than $100 million in assets. The largest of these has over $400 million in assets. The concessional taxation of these mega SMSFs is a real cost to the budget with Mercer estimating the tax concessions on a single $10 million SMSF would support 3.1 full aged pensions.

“I celebrate success, but the concessional taxation of funds like these has a real cost to the budget, which needs to be considered,” Jones said.

“We will consult widely to inform a common, agreed objective for super. Australians need to have their say. With an objective that is settled, we can talk sensibly about tax.”

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