Exemption without excuse for SMSF trustees: SMSF Association
CEO of the SMSF John Maroney Association
SMSF Association CEO John Maroney has warned SMSF administrators not to ignore the need for strong retirement planning despite the industry being exempt from Retirement Income Pact requirements (RIC) in the bill released this week.
The association lobbied the government to remove SMSF from the RIC, forcing directors to develop a retirement income strategy for fund members, based on the fact that directors and members are generally the same. in SMSF and that adding them to the reforms would only add costs and red flags. tape, thereby inhibiting the sector.
Following the announcement of the exemption, Maroney reminded SMSF holders that the need to prepare for retirement has not just gone away.
“Just because the law doesn’t require you to have a retirement income strategy doesn’t mean you shouldn’t have one,” said the CEO.
“It is not a green light for SMSF administrators to ignore the spirit of the [RIC]because we know from bitter experience that failure to properly address these issues can derail even the best pension plans. “
SMSF trustees are still responsible for ensuring members strategize to maximize retirement income, as well as minimize risk and provide flexibility in pick-up, Maroney said.
“However, codifying in law that SMSF trustees, who are usually also members, must do so would place an additional compliance burden on SMSF trustees and SMSF auditors when there is a strong incentive to do so. the SMSF trustees to defend their own interests, “said Maroney.