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.