Why Did SMSF’s Come About?

September 8, 2011

How & Why Did SMSF's Come About?

The original thinking behind self-managed superannuation funds in the 1980s with the Occupational Superannuation Standards Act (OSSA) was to allow small businesses and individuals to establish, control and invest their own superannuation funds with a minimum of bureaucracy.  The view of government was that, provided membership of SMSFs was restricted to Mum, Dad and the family, the risks of losses and political fallout were minimal.

Recently, there has been criticism of the "lack of regulation for SMSFs" from the Industry Superannuation Funds.  One is lead to believe this is partly sour grapes because members are withdrawing substantial amounts of money to establish SMSFs.

From both a political and a regulatory perspective SMSFs are not a high-risk sector of the industry.  There are now more than 420,000 funds, mostly controlled by fiercely independent people making their own investment decisions.  The risk of failure of a large number of them at the same time is minimal, if not totally non-existent.  It is also good to remember that SMSFs are not given government protection via a levy (paid by fund members) as are APRA regulated funds.

For all your self managed super fund queries please call our team at Leenane Templeton The Self-managed super specialists on 1300 587 673 our SMSF specialists will be delighted to take your call.

 

 

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