INCREASING THE MAXIMUM SELF-MANAGED SMSF MEMBERSHIP FROM 4 TO 6 MEMBERS
From 1 July 2019, the Superannuation Industry (Supervision) Act will be amended to allow the number of members in new and existing SMSFs to increase from 4 to 6. This change will also apply to Small APRA funds (funds regulated by Australian Prudential Regulation Authority) .
WHAT THIS MEANS FOR YOU ?
This initiative will provide more flexibility for larger families to be members of a single SMSF, but may also increase the risk of disputes among members. It’s also important to consider the need for:
multiple investment strategies to cater for members with different risk profiles
a corporate trustee, to avoid the risk of additional trustee penalties and to address the increased risk of fund membership changes.