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The federal government has missed a golden opportunity to support property investment through self-managed super funds in its 2011 budget, according to Chan & Naylor.
The SMSF industry was largely ignored in the federal budget bar an unwelcome 20 per cent ($30) increase to the annual levy charged to fund trustees to $180.
Chan & Naylor director Ken Raiss said that while the increase in the levy was small in dollar terms it was huge in percentage terms and just another road block in an already over-regulated industry.
“The levy has gone from $45 to $180 in four years! That’s a 400 per cent increase,” Mr Raiss told Smart Property Investment.
“Alone the levy increase won’t have a huge impact but it’s just another brick in the wall in this wall of excessive administration and regulation the government is building,” he said.
Mr Raiss said the government had promised they’d sort out the complications and ambiguity plaguing the SMSF sector 12 months ago and yet they still hadn’t.
Mr Raiss also expressed disappointment in the budget’s failure to provide stimulus measures for the broader property market.
“Residential building activity is a proven stimulus to the economy and yet the government has not offered any measures to support this industry.”
Budget is defined as the estimation of expenses made over a specified time for the purchase of goods or services.