With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the reforms that no action is required, says a technical expert.
SMSF Association head of technical Peter Hogan said in the past few months there has been a significant focus on what clients need to do in relation to the various changes to super including the transfer balance cap, the total superannuation balance and transition to retirement income streams.
However, there are a large number of clients, he said, who are unaffected by the changes but are uncertain about whether they actually need to do anything to prepare for 30 June.
“The majority of your client base is probably not really impacted by these changes because they don’t have more than $1.6 million in super, let alone $1.6 million in pension phase,” he said.
“So it might be a good idea to give them a call and say, ‘Guess what, you just carry on as normal. There’s nothing that’s really necessary for you to do other than to report the value of your income stream when you’re required to report that but in terms of having to do anything with your pension, there’s nothing for you to do. You just continue on as per normal’.”
Mr Hogan said it’s probably a message that hasn’t been as well communicated to clients.
“There are a lot of people that are reading everything that’s going on and scratching their heads and saying, ‘Well, is anything changing for me?’ And the answer is not really, not at all,” he said.
“I know everyone’s been focused on talking to those clients who are impacted and you understand exactly why that’s the case, but maybe it wouldn’t hurt to contact those clients who aren’t affected and just tell them, if practitioners have the time – obviously everyone is busy at this time of year. But to the extent at which practitioners can do that, it might be a good idea.”
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