Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator the Hon Jane Hume)General outline and financial impact
Self Managed Superannuation Fund membership limit
This Bill amends the SIS Act, Corporations Act, ITAA 1997 and SUMLMA to increase the maximum number of allowable members in SMSFs from four to six. This Bill also amends provisions that relate to SMSFs and small APRA funds. These amendments ensure continued alignment with the increased maximum number of members for SMSFs.
Date of effect: The amendments apply from the start of the first quarter that commences after the Act receives Royal Assent.
Proposal announced: This Bill partially implements the measure 'Superannuation - increasing the maximum number of allowable members in self-managed superannuation funds and small APRA funds from four to six' from the 2018-19 Budget. The remainder of the measure is to be implemented through regulations.
Financial impact: The amendments are estimated to have no revenue impact over the forward estimates period.
Human rights implications: This Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.5.
Compliance cost impact: The amendments are estimated to have a minor regulatory impact on business, community organisations or individuals.