SMSF professionals facing ‘unprecedented challenges’ as compliance rises
Remaining compliant is becoming increasingly time-consuming for SMSF professionals and their clients, while pressure on pricing intensifies with low-cost administrators driving down fees, according to recent data by software company Class.
The latest SMSF Benchmark Report by Class, based on data from its software users, found that SMSF administration fees being charged by firms are now as low as $1,500.
At the same time, accountants who are administrators and SMSF members themselves are finding the management of compliance more time-consuming, it said.
The research showed that 38 per cent of SMSF trustees find managing their SMSF far more time-consuming than they expected. However, the report noted that many of these trustees are looking to accountants and advisers to help simplify the process for them.
“Frustrated accountants, advisers and trustees are increasingly turning to smart automation to address the biggest challenges accountants have to overcome, including time spent on compliance and downward pressure on pricing admin fees,” the report stated.
The report also indicated that medium-sized firms that manage between 250 and 1,000 SMSFs have seen the most growth in terms of the average number of funds each firm manages.
While the major SMSF administrators, which are categorised as firms that manage at least 1,000 SMSFs, have seen a drop in the average number of funds they service, dropping from an average of 2,651 funds per firm in June 2017 to 2,347 in 2019.
The medium-sized firms, on the other hand, have increased their share of funds on average. Firms with between 250 and 500 funds have increased the number of firms they manage from 338 up to 356, and firms with between 500 and a 1,000 funds have increased the average number of funds they service from 598 to 646.
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
