EXISTING AGENCIES MUST TAKE GREATER RESPONSIBILITY IN SUPPORTING THIS $1 TRILLION INDUSTRY: MEMBER REPRESENTATION HOLDS THE KEY

National Accounting firm Chan & Naylor has welcomed reports that the Treasury will hold a review in response to the growing controversy over excess superannuation contributions and in light of the collapse of Trio Capital, the questions this raises over protection and compensation.

However this review, according to Chan & Naylor, is merely addressing the 'tip of an iceberg' that requires urgent attention as this form of super management grows exponentially, and a proposed industry levy will be another 'Government tax.'

"The self managed super fund is a juggernaut that shows no signs of slowing as more and more Australians realise the scale of the looming pension crisis and are deciding to take more responsibility for the benefit of their own future retirement income," said Ken Raiss, Director at Chan & Naylor.

The firm welcomed also industry's calls for some form of member protection against fraud, but insists that this direction must be instigated by members and their advisers themselves in collaboration with industry authorities. "The Government must shoulder part of the responsibility as part of normal ASIC and APRA operations without the need to apply a levy as any fraud or other unscrupulous behaviour affects all Australians, not just those directly impacted" said Ken Raiss.

"In light of recent events one can assume that there is growing need and interest among our 1,000 plus members for some form of industry member representation," commented Mr Raiss.

According to Mr Raiss, other areas of the trust mechanism requiring urgent review include: 1. The arbitrary maximum limit of four members to each SMSF;

2. The destructive 93% potential tax penalty applied to excess super contributions;

3. The current age limits which can restrict members from contributing to their superannuation. All Australian's should be allowed to contribute to their superannuation irrespective of age or working hours and it is discriminatory to limit someone's super contributions due to age; 4. Existing legislation that doesn't allow SMSFs trusts to acquire a property and then undertake renovations while debt is still owed on the property; and,

5. Improving the operating environment for SMSF trustees including better education and support.

MEDIA CONTACT: Justine Taylor The Narrative t: +61 2 9078 8263 m: 0422 66 30 66 e: justine@thenarrative.com.au w: www.thenarrative.com.au