BGL Corporate Solutions managing director, Ron Lesh, said that while changes were not as drastic as the previous budget, the addition of the first home super saver scheme and downsizing exemption to the $1.6 million balance cap added “further complications”.
“While these changes sound good in theory, they are going to make administration harder again for our clients who are already struggling with last year’s changes and there has been very little consideration so far in the SMSF community on how the new bank levy will increase the cost of banking for SMSFs as well as reducing dividends,” said Mr Lesh.
“The banks are already telling us someone has to pay for this levy – and we know this will either be bank customers, bank employees or bank shareholders, and we can be pretty sure the banks will go down the path of least resistance.
Mr Lesh believes the changes highlight the importance for SMSF administrators to move to the cloud.
“This year’s budget changes will again require administrators to have more information for their clients and provide more reporting to the ATO. It is really no longer a matter of when - we are past the when - those that have not moved or are not moving to the cloud are simply falling further and further behind,” he said.