The nature and intent of the federal budget’s superannuation measures further detract from the limited licence for accountants, according to one SMSF consultant, who has also outlined a list of professional “winners and losers” in the budget fallout.
The federal budget has signalled a change in the nature of superannuation from being an attractive and tax-effective investment vehicle, especially for high-net-worth individuals, to being “one part of retirement planning, but not the whole story”, said Sarah Penn, director of Mayflower Consulting.
“Super is now limited in its ability to provide a dream retirement for your clients, which means that they are going to be looking more broadly, rather than just super. For financial planners, this isn’t too bad. Planners already talk about ‘total wealth’ for clients and how to manage that most effectively for retirement. For accountants though, especially those who are planning to operate under a limited license, these changes pose something of an issue,” Ms Penn told SMSF Adviser.
“On the upside, because they see their clients’ full income picture, accountants are very well placed to get a full licence, and give clients full financial advice,” Ms Penn said.
“That’s a great thing that they should be thinking about doing, but it’s a big step from where they are now.”
Ms Penn believes that industry super funds will also find it difficult post-budget with member retention.
“They’re trying to get people interested in super, and trying to set up retirement income solutions, and this is pushing super back to being that next level of safeguard, and not so exciting,” said Ms Penn.
Ms Penn believes full-service planners, who already talk about retirement planning and not just superannuation, will benefit from the budget measures, she said.
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