The Institute of Public Accountants (IPA) has expressed concern about the possibility of the corporate regulator imposing minimum account balances on SMSFs.
The management of the SMSF and the performance of its investments should be the principal concern, according to the IPA chief executive Andrew Conway.
Mr Conway argued that while administration could be more expensive for funds with lower balances, the trustees may decide to accept such costs based on the performance of the fund.
“The idea that fund performance should solely be measured by relative costs of administration misses the point,” said Mr Conway.
“Most people setting up an SMSF do so because they want control of their investments. Many trustees minimise costs by performing some of the SMSF functions themselves.”
Mr Conway also said unnecessary regulation should be avoided as it further increased the administration costs of SMSFs.
“The regulator needs to focus on issues like the quality of advice, removing conflicts of interest in the system and further education of trustees, not setting arbitrary figures,” said Mr Conway.
“As we know, the regulator is required to respond to and enforce government policy. We are hopeful the new government will provide clear guidance to the regulators.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all