Speaking at the SMSF Association conference last week, Tim Mackay, principal of Quantum Financial Planning, said the challenges coming towards the SMSF sector are significant and that practitioners should therefore accumulate as many ideal clients while they can.
“Government is under massive budgetary pressures and they’re looking for revenue sources and superannuation will be an obvious place they’ll look.
“I [also] think there’s a good chance that technology will also challenge our industry.”
Mr Mackay referred to the Deloitte report that listed financial services as the industry most likely to be disrupted in Australia.
“Disruption is coming in one shape or form,” he said.
Mr Mackay said another major threat is commoditisation with accounting listed relatively high on the list behind banking.
“I think right now we should make hay while the sun shines, try and get as many ideal clients as you can and serve them the best you can before change starts to hit us,” he said.
Mr Mackay said if SMSF practitioners are unable to identify their value proposition, there’s a good chance they’ll be commoditised.
“If all you’re doing is what the next guy’s doing then technology can replicate that,” he said.
While Mr Mackay said these changes probably won’t happen tomorrow or in five years’ time, most SMSF practitioners are building businesses for the next 10 or 20 years and change will occur over that period.
“The value that you’re building up in your business today will be realised, towards that time when those changes start to really take off,” he said.