Chan & Naylor director Ken Raiss pinpoints the restriction for SMSFs to have a maximum of four members, restriction to move life insurance to an SMSF, cancellation of an over 65 trustee entitlement to three-year average contribution plus over-contribution penalties as the key pressing guidelines to be revisited in the New Year.
“These don’t necessarily impact government revenues at a time when they are trying to keep them at a level to sustain government work; these are just administrative things [and it is] very hard to understand why they are still there,” Mr Raiss told InvestorDaily.
He explained that SMSF compliance guidelines contain more than their fair share of unnecessary and arbitrary rules but that some of these are discriminatory, lack logic or make the process of providing for independent retirement unnecessarily difficult.
“I think if we don’t push [for review] it will never happen. We’re trying to get people’s opinions, do surveys and get feedback on their concerns; then we can lobby government,” Mr Raiss said.
Chan & Naylor plans to continue to measure these concerns, which were raised through client feedback, and promote members’ best interest to government members.
“It beholds government to, within taxing requirements, make it as easy as possible to allow members to fend for themselves in retirement.
“So why put arbitrary roadblocks in place? It’s cost neutral to government but hugely beneficial to members,” Mr Raiss said.
