The SMSF industry is still working through the far-reaching policy and legislative changes that took effect on 1 July 2017, says SMSF Association CEO John Maroney, in a media release issued on 12 January 2018.
He says the changes – the most extensive in the past decade – fundamentally altered the superannuation landscape for SMSF members and advisers, with the industry still coming to terms with its impact in certain areas, such as estate planning and death benefits.
“In the lead up to 1 July 2017, the industry’s focus was on optimising contributions and reducing pension accounts to under $1.6 million as well as considering CGT relief for those affected by the transfer balance cap and transition to retirement changes. A consequence of this understandable focus on these issues requiring immediate action was less attention being paid to the longer-term strategic consequences of the changes.
“Now the industry has had time to reflect on the changes, it has recognised the enormous impact on estate planning that wasn’t appreciated at the time the changes were introduced. “It’s also had the effect of making death benefits, always a complex issue, even more complex. The reality now is that SMSF members who fail to appreciate what these changes mean, or fail to get specialist advice, could find themselves being forced to move money out of superannuation.”
Maroney says that the transfer balance cap, total superannuation balances and SMSF event-based reporting are all new concepts that advisers and SMSF members are working on together. There is no doubt these changes have increased the complexity and compliance burden of the system, although the Association’s concerns have been allayed somewhat following detailed discussions with the ATO and the Government. But the increased complexity can’t be denied, and advisers are urged to speak regularly with their clients, to streamline and assess their processes, and take every opportunity to increase their technical knowledge.”
- Is the CEO issuing the media release Jim Mooney?
- Was reducing pension accounts under $1.6m a focus pre-1 July 2017?
- Has the industry now realised that the 2017 changes have an enormous impact on estate planning?
- Is the CEO is content with adviser’s current technical knowledge?
[answers:no(JohnMaroney);yes;yes;no(need to increase it)]