While the regulatory changes to super are expected to bring significant challenges to SMSF practitioners and trustees, they will also “reinvigorate the SMSF industry”, according to one consultant.
Miller Super Solutions founder Tim Miller says while the superannuation industry has undergone many law changes in the past, they have never been this significant.
“I think it’s certainly going to test parts of the industry which I think is a good thing. Within the SMSF professional space, it will certainly separate those who are serious about SMSF administration from those that are just playing around,” Mr Miller said.
In some circumstances, the changes will require a major overhaul of internal systems, he added.
“I suspect that the larger firms that are using the cloud-based systems are probably in a better position although that doesn’t necessarily mean administratively they’re ready yet.
“I think there’s certainly a greater level of pressure on the administration process than what we saw in 2007 where it was more about the dollar value of what you put in rather than what you already had in there.”
Mr Miller said the new rules will also make trustees think about whether an SMSF is the right approach for them.
“I think it will challenge the whole advice process and ensure that people do it for the right reasons,” he said.
“We’ve already seen a number of issues with best interest that have come up in the past few months.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all