The regulator’s focus on these risks within the sector is not “necessarily founded”, IPA chief executive Andrew Conway told SMSF Adviser.
“We don’t think there are systemic failures in the administration of SMSFs… and I think that’s going to be a challenge for government, from a policy point of view, to ensure they get the balance right,” Mr Conway said.
“Achieving sound regulation that is practical and still allows the sector to grow… that’s really what’s in Australia’s best interest from 2014 and onwards,” he added.
Mr Conway’s comments come as the ATO announced a decrease of 11 per cent in the number of SMSF compliance breaches for the year ended 30 June 2013.
In addition, 2014 is set to be one of the “the most important” years for SMSFs, as the sector continues to address issues associated with the regulator, he said.
“I think the reality is, as everyone has realised SMSFs [are] not going away, it’s not the flavour of the month or the topic du jour… the SMSF sector is strong, viable and fast growing,” Mr Conway said.
“I think the challenge is how the regulators respond to that without smothering the sector.”
Vested interests (the big end of town and unions)are threatened by SMSF and are throwing their weight into reducing the threat by ever increasing compliance costs heaped onto SMSF. The increase of the ATO levy is another example of this. SMSF are the only entities required to pay a fee when lodging a tax return.
Too much regulation with no thought to unintended consequences is destructive. If it isn’t broke don’t fix it!!.