STRATEGY
Parameters for accountants
The accounting profession is still looking for a practical alternative to the limited licensing regime that is clearly not working. While this process continues, Grant Abbott offers a reminder of the SMSF advice accountants can provide without having to be licensed.
GRANT ABBOTT is a director and founder of LightYear Docs.
Australia has over 600,000 SMSFs with close to $900 billion in assets and represents a large market for specialist SMSF advice. Until 2016, accountants had a specific exemption when it came to advising on SMSFs and provided extensive advice to small and medium business clients on these types of funds. Classic strategies, such as acquiring business real property in an SMSF and leasing it back to a member’s business, as well as transferring proceeds from the sale of a business, courtesy of non-concessional contribution concessions, provided a great advice avenue plus significant tax benefits for clients. Apart from tax strategies, there were great incentives for accountants and tax agents to offer
SMSF services, including advice and administration. With each SMSF annual administration fee costing upwards of $2000, having 100 or more SMSFs was great recurring fee income. And with the Association of Superannuation Funds of Australia predicting the amount of money in SMSFs by 2040 to top $3 trillion, servicing these funds should be considered a must for accountants.
The limited licensing regime In 2016, the accountant’s SMSF advice exemption was diluted and a limited licensing regime was introduced. Continued on next page
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