Aaron Dunn, CEO of Smarter SMSF, said there is still a lot happening regarding the CSLR, and it is one area that financial advisers will have to continue to watch in the coming months.
“We don’t necessarily see the light at the end of the tunnel yet, so I would argue that it will be again, front and centre in 2025 for advisers,” Dunn said.
The DBFO reforms will also be a hot topic. Many of the issues raised through tranche 1 and the updates around the new class of advisers that were released in draft form towards the end of last year will be up for debate and discussion.
“We know the SMSF Association has put a stake in the ground in terms of the role that accountants can play and their exclusion [in the new class of advisers].”
“And we also know what Labor was looking to do in providing internal advice channels to be able to support that as well, but there is still a lot of water to go under the bridge when it comes to opening up advice to Australians more broadly.”
Additionally, Dunn said the definition of wholesale versus retail clients and the test that is proposed will also continue to be an area of controversy in 2025 and one those in the SMSF sector will be paying close attention to.
He said advisers will need to be mindful of how their clients may be classified for the purposes of their SMSF and the application of wholesale client tests.
“We haven’t had a real outcome from this [wholesale client test]. We don’t know what’s going to happen with the wholesale investor test.”
“It’s the clarity that’s needed on these because those tests are outdated in terms of the role they’re playing today, and there is a real level of confusion as to what test applies in what circumstances.
“The greater the clarity we get on what assets do and don’t get included for what is currently $2.5 million and $10 million and how they need to be applied across different individuals and structures and so forth, and the sooner we get resolution on that ultimately is going to be better for everyone involved.”
