The Self Managed Super Fund Association (SMSFA) this past week spoke up and made its stance clear regarding the soft cap proposed by the Labor Government, led by Anthony Albanese.

The soft gap is currently set at $3 million and the calculation method used by the government has been labelled as controversial by the SMSFA.

The SMSFA has now taken its chance to speak out and is currently working closely with industry bodies to stand up against the aforementioned calculation methods used.

Albanese and the Labor Governments soft cap have been accused of bias towards SMSFs.

This is due to the fact that a large percentage of SMSFs are on the brink of reaching the proposed soft cap.

Currently, 25% of SMSFs have assets ranging between $500,000 and $1,000,000.

While 21% have an SMSF balance of $1,000,000 and $2,000,000 and 15% have an SMSF balance of $2,000,000 and $5,000,000.

It is abundantly clear that the soft cap is targeting hardworking investors, that are investing inside their SMSF.

Therefore, it is a breath of fresh air to see the SMSFA and other industry bodies come together to stand up against the government’s soft cap.

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