Straw poll reveals trends on fee models for TBAR services
Fixed fee billing is likely to be the most popular method of charging for the services associated with completing transfer balance cap reporting for SMSF clients, according to a recent poll.
Results from a recent poll undertaken by Smarter SMSF in a webinar, showed that 34 per cent of the 271 respondents intended to use fixed fees to charge for the additional work that needed to be undertaken for the TBAR.
This was closely followed by 30 per cent of respondents who said they would use time cost billing to charge for any work associated with the reporting for their clients.
Smarter SMSF chief executive Aaron Dunn said particularly in the initial stages of transfer balance account balance reporting, any reporting completed for clients is going to be a more labour intensive process, until the automation around this reporting is improved.
“There is additional work so we need to factor that in, so therefore professionals need to think about how they will charge SMSF clients,” said Mr Dunn.
Some professionals, he said, may decide to charge based on time-cost initially in order to measure how much time it will take to undertake this type of reporting for clients.
“They might then move into a standardised fee structure because they’ve been able to measure that time cost and benchmark it on an ongoing basis,” he said.
Around a third of respondents, or 31 per cent were unsure how they were going to charge for the new reporting.
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.