Super reforms to ‘test SMSF industry’, prompt systems overhaul
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.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.