03 May 10 Cooper Review releases phase three preliminary report on SMSFs
On 29 April 2010, the Super System Review panel chaired by Jeremy Cooper released its phase three preliminary report entitled " Self-Managed Super Solutions". This report sets out the Panel's preliminary recommendations on self-managed superannuation funds (SMSFs).
The preliminary report is a response to issues raised in its Phase Three: Structure (including SMSFs) issues paper released in December 2009.
Key preliminary recommendations include:
- prohibiting investment in collectables and personal-use assets (such as artworks, wine collections, exotic cars and yachts);
- strengthening the competence and independence of approved auditors;
an online SMSF resource centre to help SMSF trustees build skills and make better decisions;
- making the ATO's penalty regime more flexible to enable more effective and equitable regulation;
- tightening the SMSF registration process, including the introduction of member identity requirements, to reduce instances of fraud and illegal early release schemes; and
- reducing the potential to benefit illegally from related party transactions by prohibiting the acquisition of in-house assets and imposing restrictions on the way in which an SMSF can transact with related parties.