✦ Plain-English Summary

Treasury Laws Amendment (Self Managed Superannuation Funds) 2020

What it does

This law increases the maximum number of members allowed in a self-managed super fund (SMSF) from 5 to 6 people. It updates the rules around how these funds must be controlled — specifically, who needs to sign off on decisions — to match the larger membership.

Why it matters

If you're part of a family or small business super fund, you can now add one more member without having to restructure or split the fund. This makes it easier for families to manage retirement savings together and reduces administrative hassle.

Key details

• Member limit change: SMSFs can now have up to 6 members instead of 5 (this also applies to small APRA funds under the Corporations Act)

• Decision-making rules: With more members, the law clarifies who must approve decisions — either all directors if there's only 1-2 of them, or at least half if there are more; similar rules apply for individual trustees

• When it starts: The changes take effect on the first of January, April, July or October after the law received Royal Assent (so likely early 2021)

Official Description

Amends the: Superannuation Industry (Supervision) Act 1993 to increase the maximum number of allowable members from four to six in self managed superannuation funds and small APRA funds; and Corporations Act 2001 , Income Tax Assessment Act 1997 , Superannuation Industry (Supervision) Act 1993 and Superannuation (Unclaimed Money and Lost Members) Act 1999 to make consequential amendments.

Committee Referrals

Senate Economics Legislation Committee

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.