At the start of September, Senator Jane Hume introduced a bill to the Senate which would lift the limit on members in a self-managed superannuation fund from four members to six members.

This bill has been a long time coming—it was first announced in last year’s federal budget.

There are four main reasons why an SMSF may want to take advantage of this change (if it gets passed): reduced fees, the ability to pool balances, which in turn increases investment choice, and improved estate admin and planning.

But there is opposition to this bill. Some opponents claim that this change will increase the opportunity for elder abuse and complicated estate planning disputes.

Ultimately, the change is unlikely to affect many current SMSFs, as most only have one or two members, but I can foresee this playing a role of increasing importance in the wealth planning of family estates.