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Superannuation

Budget cleans up reporting oversight

SMSFs information

The budget has corrected an administrative oversight removing a requirement for SMSFs to report fund information only relevant for retail and industry superannuation funds.

A minor administrative change referenced in passing in this year’s budget papers will prevent SMSFs from having to disclose fund information that does not apply to them, which was overlooked as part of the introduction of six-member funds.

The change will mean the trustees of an SMSF with five or more members will not be required to make publicly available a product dashboard for each of the fund’s MySuper products and choice products, including fees and costs for those products.

SMSFs do not offer MySuper and choice products to their members, but section 1017BA of the Corporations Act states the trustees of a regulated superannuation fund with more than five members must disclose that information.

However, a reference to minor amendments to Treasury portfolio legislation in Budget Paper 2 points to the explanatory memorandum for the Treasury Laws Amendment (Enhancing Tax Integrity and Supporting Business Investment) Bill 2022, which in turn outlines the changes the government plans to make.

The explanatory memorandum noted trustees of regulated superannuation funds are obliged to the provide information, but added: “These obligations are not intended to extend to self-managed superannuation funds or small APRA (Australian Prudential Regulation Authority) funds.

“The Treasury Laws Amendment (Self Managed Superannuation Funds) Act 2021 amended the Corporations Act 2001 (and other acts) to increase the maximum number of allowable members in a self-managed superannuation fund and small APRA fund from four to six.

“Consequential amendments in that act and the Treasury Laws Amendment (Your Future, Your Super) Act 2021 to various Treasury laws give effect to this change.”

The memorandum added the required amendment to the Corporations Act to ensure SMSFs and small APRA funds did not need to comply with the obligation was not included in either bill, but a new amendment to be included in the Treasury Laws Amendment (Enhancing Tax Integrity and Supporting Business Investment) Bill 2022 will include that change to the Corporations Act.

SMSF Association policy manager Tracey Scotchbrook said the change was not easy to identify as it was not an overt change.

“That change was hidden in the budget papers because while it refers to the bill’s name, it doesn’t have any details about the bill which has already been tabled in the parliament,” Scotchbrook told smstrusteenews.

“It is hidden when looking at the budget papers but when looking at the bill and the explanatory memorandum, I see that’s a red-tape measure.”

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