Superannuation rules have changed again
THE superannuation rules have been changed yet again - this time to require trustees of self managed super funds to consider insurance for their members as part of the fund's investment strategy.
Also, the fund's assets will have to be shown at "market value" when the accounts are being done.
These reforms are unlikely to have much impact, but it means trustees of self managed funds will have even more work to do.
There is no compulsion to take out life insurance, in fact if the members were retired it may not be practical, but the trustees will have to produce evidence that they considered whether insurance is appropriate. It could well be that insurance may be needed for younger members, but not for older ones.
The requirements that assets be valued at market value will not affect those funds who hold listed shares or cash type investments, but collectables such as artwork will have to have a valuation done. There is no need to use an external valuer but the trustee will certainly have to hold written evidence that the valuation is based on objective and supportable data. This applies to property too.
This may be a good time to remind trustees of self managed funds that there are onerous reporting requirements and getting them wrong can be very costly. Unfortunately a large number of questions that come to me by email are from trustees of small self managed super funds, and often the content shows they are sadly lacking in the skills needed to run their own fund.
Advice is always available - make sure you seek it and take it.
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: firstname.lastname@example.org.