The $530 billion SMSF sector is undergoing changes to taxation. The Coalition government has decided against tax to be imposed on super pension above $100,000.
The Coalition has argued that there is no system in place for tax collection, and since most SMSFs are invested in property, it is too large of an asset to be taxed. A reasonable $500,000 property will net a $200,000 tax in 20 – 30 years if the property is sold for $2 million.
The rules are being changed to accommodate investors and to regulate the sector, as there is growing concern over the financial advice being received from property spruikers. Changes in regulations are expected from the government, but investor protection and education is just as important.
Read more about this on the Perth Now website.