ASIC wants to close SMSFs worth less than $500k

Discussion in 'Current Affairs' started by willrocks, Nov 5, 2019.

  1. willrocks

    willrocks Well-Known Member Silver Stacker

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    https://www.afr.com/wealth/superann...an-500k-think-again-asic-says-20191010-p52ziv
     
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  2. Number 47

    Number 47 Well-Known Member

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    We're definitely owned by the government here in Australia.
     
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  3. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Ironically (or maybe not) the greatest burden in terms of loss of value created for SMSFs are those costs brought on by compulsory compliance obligations. Maybe ASIC could do their bit and reduce this burden by not imposing mandatory compliance fees.
     
  4. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    To my mind, the greatest advantage of an SMSF is that you have taken your future wealth out of the mainstream financial system. You are then avoiding share crashes, bail-ins etc. Sometimes their may be a small admin penalty, but that decision is yours.
     
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  5. ddevil

    ddevil Active Member Silver Stacker

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    I very much prefer SMSF's than the mainstream!
     
  6. SilverDJ

    SilverDJ Well-Known Member

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    I cannot read the article. But it seems to imply that ASIC are just recommended in that people re-think their SMSF choice?
    Where does it say they want to close SMSF's?
     
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  7. Silverling

    Silverling Well-Known Member Silver Stacker

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    I'm somewhere in between. I went into a industry fund that allows me to buy my own shares and invest in as many term deposits as I like. It does have a % cost of them looking after it but it has a cut off at $900. In other words once you reach $900 worth of fees there are no more % based fees on the balance there after. Why did I chose this? 3 reasons, should I drop off the planet my wife can not run a SMSF and the second was that the industry funds were not going to be affected by the Labor policy of removing the imputation tax credit refund they were going to bring in. Thirdly I do not have to do any paper work what so ever. When it comes to tax time, it's all in front of my accountant already, zero for me to do.
     
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  8. milled

    milled Active Member

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    That's my take too. If you are in stopover for industry funds, you are by default taking the risk that what they call "cash" is not cash but a mixture of currency and government bonds. Holding cash in industry super is a loss maker. It's less than cash in the bank.

    In the last 10 years, if you held cash, you lost. If you held gold in SMSF, you gained.

    Moral of the story is as you say the government already has shown it will just seize currency directly from accounts when it feels it has to and bail in laws are in place for the banks at a time when they are the most exposed to domestic residential real estate in the world.

    Bill Shorten also cannot be unseen saying that superannuation is "a national asset".
     
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  9. SilverDJ

    SilverDJ Well-Known Member

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    To be fair, gold and can go down as well.
    You'd also be well ahead in shares.
    Three advantages of a SMSF for me:
    1) More control as said.
    2) Can buy property you can use either as an investment or for your own company use.
    3) Every time you log into your bank account you get to see that SMSF figure added to your total net worth, it's a warm fuzzy.
     
  10. JulieW

    JulieW Well-Known Member Silver Stacker

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    Yes, that was quite a slip up, letting that cat out of the bag.

    The advantage of your SMSF is that you can save real assets, and not just paper promises and easily attacked ledger balances.
     

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