SMSF Updates

SMSF membership increased to 6

The ATO have alerted SMSF trustees that the laws have changed with regard to how many members a SMSF can have.

On the 22nd June 2021, Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 received royal assent, and as such, from 1 July 2021, self manged super funds (SMSFs) as well as small APRA funds will be able to contain up to 6 members (previously it was only 4).

However, they have also pointed out that there are a few things trustees should consider first:

  • trustees will need to consider what their trust deed allows. It may be written in a way that locks them into the old laws of only up to 4 members
  • some state and territory laws restrict numbers of trustees (although a corporate trustee gets around this)
  • a system change will need to be implemented for the additional two members via the Australian Business Register. The ATO are recommending waiting until the ABR is updated before registering of updating a fund to more than 4 members.

It is recommended that trustees seek professional advice before expanding their fund.

 

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