The Cooper Review panel has released its preliminary report in relation to Phase 3 of the review (Self Managed Super Funds). The final report is due to be delivered to the Government by 30 June 2010.
The initial preliminary recommendations include:
- Abolishing the 5% in-house asset limit
- Making related party acquisitions/disposals to be at market value
- Introducing a prohibition into holding collectables and personal use assets
- Will look at installment warrants in a few years to gauge the take-up/success
- Introducing a sliding scale of penalties that can be imposed by the ATO
- ATO to be given more power to compel compliance
- No mandatory education of trustees unless they have breached the SIS rules
- Introducing SIS private binding rulings
- Increasing the competency requirements for financial planners in SMSF issues
- Set out some discussion points in relation to pre establishment of SMSF’s
- Become stricter on the SMSF auditor requirements
Once the final report and Government announcement has been made in relation to this review, we will report these onto you.
