SMSF Association CEO John Maroney says: “We do not and have never supported such a cap.

“These balances are a legacy issue with the 2017 changes putting clear limits on contributions to superannuation funds and on amounts that can be held in the tax-free retirement phase.

“We did suggest in 2020 that the Retirement Income Review examine the issue of extremely large balances, but deliberately did not recommend where that line should be drawn.

“It’s our position that any proposal to restrict retention of extremely large balances in superannuation needs to be handled carefully to ensure that any rule changes allow adequate time to manage the restructuring that would be involved, especially where large illiquid assets are involved.”

Maroney adds that the Association welcomes the announcement by the Shadow Treasurer, Jim Chalmers, that Labor will not introduce any new superannuation taxes or balance caps if it forms Government after the upcoming Federal election.

“Constant changes to the superannuation tax settings erode confidence in the system and discourage members from making long-term savings plans.

“That said the Association understands the system must continue to evolve with many of the recent legislative and regulatory changes to be discussed in depth at the 2022 National Conference being held in Adelaide from April 20-22.”