The one certain thing about superannuation is that law keeps changing. Sometimes the changes are big which can almost be regarded as a complete overhaul of the previous superannuation law.
For example, the big changes to the limits of contributions. Another is the introduction of surcharge based on the upper threshold of the superannuation balance and then the removal of this surcharge several of years later. Another example was the introduction of in-house asset limits or the introduction of the borrowing prohibition and then changing the rules to allowing gearing / borrowing under certain conditions. Those changes create a notion in the SMSF industry that the trust deeds have to be updated to accommodate for the changes.
However it is very important to understand that during the changes some old rules have been grandfathered which means that an older SMSF maybe allowed to be used in a way a newer super fund may not be allowed to be used. Therefore if you are a member on an older SMSF you should be cautious regarding the rollover to a new SMSF and it would be advisable to check if there is any grandfathering rules which be lost due to a fund change.
Another situation could be that your parents or grandparents have an old SMSF which holds some treasured grandfathering which would be lost if that SMSF would be closed after the estate has been paid out.
It is therefore a very good idea if you should find such a treasure (an old SMSF) to have an expert evaluate it.
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.