Frenzy over DIY super ambush

Opposition to the Government's Budget clampdown on DIY and small super funds is growing with finance industry groups set to discuss a united front against the moves. Details of the Government's decisions were released banning DIY and small funds from setting up life pensions and engaging in “dubious” pension-related strategies. Ernst & Young's Noelle Kelleher said the Government move has reduced superannuation retirement income choices. The growth of DIY super has come about because people haven't liked life insurers' products and DIY provided the only alternative. Kelleher said while no-one disagreed with action to eliminate rorts, there were legitimate grounds for some of the strategies labelled “dubious”, such as directing employee benefits to fund reserves instead of to their accounts. The Association of Superannuation Funds of Australia will meet with CPA Australia and others tomorrow.

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