TBAR tipped to shake up SMSF admin services
Larger SMSF administration firms may differentiate their services from smaller firms by offering more regular reporting of events, in order to attract more business from advisers, CFS has predicted.
Colonial First State executive manager Craig Day said SMSF firms and their clients can obviously report more regularly than the specified time frames set by the ATO and some firms may choose to undertake this reporting more regularly for their clients.
“What might happen is that financial advisers might specifically start getting their clients to use larger administration service providers that are able to report within the same sort of timeframe that a large fund would,” said Mr Day.
“This is where technology is going, and it would enable the financial adviser to be able to rely on the ATO's data.”
The financial adviser may also be able to access reports from these administration systems, he said, that would give the adviser a high level of confidence about what the transfer balance cap value is for their client.
“So you might see a preference by financial advisers for their clients to use these modern administration services and systems, rather than sticking with an old SMSF administration service provider that may only be able to report on those extended time frames,” he said.
“It’s likely that you get some large administration service providers looking to provide that as a service differentiation.”
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.