Self-managed superannuation funds will be allowed to have six members rather than only four, Financial Services Minister Kelly O'Dwyer is expected to announce on Friday.
Ms O'Dwyer is set to announce the change when she speaks at an SMSF expo in Melbourne.
She will also confirm the government is extending SuperStream to SMSFs.
SuperStream is the electronic system for transmitting money and information across the super system, between employers, funds, service providers and the Australian Tax Office. Until now SMSFs have been carved out.
The Self-managed Independent Superannuation Funds Association (SISFA) has previously lobbied the government for an increase in the maximum member number of SMSF members from four to six or seven.
SISFA managing director Michael Lorimer said some family groups – parents and three children, for example – had been precluded from being members of the same fund.
"We have suggested six or seven to accommodation family groups," he said.
"There are certainly a number of instances I've come across as a practitioner where people have had to look at having multiple super funds to accommodate larger families.
"I spoke the other day to a mum and dad and three daughters who have to have two funds."
Limits on SMSF member numbers are contained in state law.
"One of the impediments to date to increasing the number beyond four is that under most, if not all, state trust acts, the maximum number of individual trustees of a trust is four," Mr Lorimer said.
SMSFs are trusts.
"How this all ties into the state jurisdictions will be interesting," Mr Lorimer said.
There were several possible ways forward, he said, including the use of a corporate trustee, which allowed an unlimited number of directors.
"Alternatively, you could look at the statutory definition of a self-managed super fund, which requires all members to be trustees and all trustees to be members."
Mr Lormier also welcomed the extension of SuperStream.
While some SMSFs were likely to resist in the belief it would be too expensive, he said the move to streamlined, digital record keeping and reporting was inevitable, he said.
"For those nay-sayers who think they can still run their SMSFs in the new world out of a shoebox one a year are kidding themselves."
26 April 2018