Stronger Super - The impact for SMSFs - December 2010


Published on

This is a copy of the presentation of the webinar conducted in December 2010 regarding the government's response to the final recommendations by the Cooper Review Panel regarding self-managed super funds.

Published in: Economy & Finance, Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Stronger Super - The impact for SMSFs - December 2010

  1. 1. Stronger Super: The impact for SMSFs<br />Special Webinar Event <br />21 December 2010<br />Presented by: <br />Aaron Dunn<br />Director, The SMSF Academy<br /><br />
  2. 2. Housekeeping<br /><ul><li>Attendees are muted for the session
  3. 3. You can type questions to the presenters from your screen
  4. 4. PowerPoint presentation and the recording will be made available to participants after the session
  5. 5. Including all Q&A’s from the session</li></li></ul><li>About Aaron Dunn<br /><ul><li>14+ years within the accounting and financial services industry focusing on the Self Managed Super Fund industry
  6. 6. CPA and SMSF Specialist AdvisorTM (SSA)
  7. 7. Managing Director of The SMSF Academy
  8. 8. Established to provide education and training to trustees and advisors
  9. 9. Previous role as Head of SMSF Solutions, Snowball Group Limited
  10. 10. Personally invited by Jeremy Cooper to meet and discuss Phase Three of the Super System Review
  11. 11. Part of the ATO Auditor Working Group for Super Simplification
  12. 12. Regular presenter within the industry and to trustees on SMSFs</li></li></ul><li>Disclaimer<br />This presentation provides general advice only. No direct or implicit recommendations are given in this document. This means that the general advice provided has not been prepared taking into account an individual’s financial circumstances (i.e. investment objectives, financial situation and particular investment needs). You should assess whether the advice is appropriate to your individual financial circumstances before making an investment decision. You can either assess the advice yourself or seek the help of an authorised representative through an Australian Financial Services License (AFSL) holder.<br />The SMSF Academy Pty Ltd believes that the information in this presentation is correct at the time of compilation but does not warrant the accuracy of that information. Save for statutory liability which cannot be excluded, The SMSF Academy disclaims all responsibility for any loss or damage which any person may suffer from reliance on this information or any opinion, conclusion or recommendation in this presentation whether the loss or damage is caused by any fault or negligence on the part of presenter or otherwise. <br />
  13. 13. A good result for SMSF Trustees…<br />Why?<br />No mandatory education to operate a SMSF<br />Unless you breach your fund’s compliance obligations<br />Greater competency required of those advising to trustees<br />Still provides absolute investment choice<br />Including Artwork, collectibles, IHAs<br />Ability to continue to pursue gearing strategies<br />To be reviewed in 2 years time<br />BUT AT WHAT<br />COST?<br />
  14. 14. But the message is loud and clear…<br />Greater enforcement to uphold integrity of the superannuation system<br />Sliding scale of administrative penalties<br />Less serious cases of non-compliance<br />To be paid by the Trustees (not the Fund)<br />Would need a condition of release to be met / illegal early access<br />Mandatory education where breaches occur<br />How severe does the breach need to be?<br />To be paid by the Trustees (not the Fund)<br />ATO to have greater powers to enforce action to rectify<br />To be paid for by an increase in the Supervisory levy effective from 2010/11 financial year<br />
  15. 15. More expected from the SMSF Service Provider “bookends”<br />SMSF - Advice<br />SMSF Audit<br />Financial Advisers (8.6)<br />Increase in competency required to advise on SMSFs<br />ASIC to develop a SMSF specialist knowledge component of RG146<br />To consult with FoFA expert advisory panel on its implementation<br />FoFA & the Accountant’s Exemption (8.7)<br />Who will be able to provide advice about establishing a SMSF?<br />Currently considering alternatives including a restricted licensing framework as part of FoFA process<br />
  16. 16. SMSF Service Provider “bookends” (cont.)<br />SMSF Audit<br />SMSF - Advice<br />Approved Auditors (8.8)<br />ASIC as registered body <br />Determine qualifications, competencies and apply penalty regime (incl. deregistration)<br />Link to minimum ongoing competency and knowledge requirements<br />ATO to police approved auditor standards<br />To share information with ASIC to both carry out roles effectively<br />For example:Expect “Audit the Auditor” program to continue with incompetent auditors referred to ASIC for disqualification (along with professional body)<br />ASIC to develop approved auditor independence standards (8.9)<br />Review of existing standards and industry consultation<br />E.g. APESB existing requirements for SMSF auditing<br />
  17. 17. What was good, bad and indifferent in the government recommendations?<br />
  18. 18. Key Recommendations – The “good” stuff<br />Borrowing certainty for next 2 years (8.10)<br />Will assess excessive use and risk across the industry<br />In-house Asset abolition not supported (8.12)<br />Not perceived as detrimental to the industry<br />Prohibition of collectibles and personal use assets not supported (8.14)<br />As expected – Gillard government promise during election campaign<br />New stringent requirements to be introduced from 1 July 2011<br />All assets to be valued to net market value<br />ATO with industry to develop valuation guidelines<br />Reduce the administration burden (8.19)<br />Removal of the ‘two hat’ syndrome<br />Focus on improving system’s integrity<br />E.g. Fund establishment process & verification (8.20, 8.21) including rollovers from APRA-regulated funds (8.23), criminal & civil sanctions for illegal early access promoters (8.24, 8.25), AML/CTF for rollovers (8.26), etc.<br />
  19. 19. Key Recommendations<br />The “Not sure?” stuff<br />Trust deeds <br />There will still be a need to tailor super fund trust deeds!!<br />For example, how do you build in death benefit rules, such as the SMSF Will?<br />How is voting determined between the members?<br />Impact of SIS operating standard to separate fund assets<br />This will become a section of the compliance audit<br />May present issues using a trading company as trustee<br />Special Purpose Trustee Company by far the superior choice<br />“Not-so-good” stuff<br />In-specie share transfers to become prohibited (s.66)<br />Where secondary market exists, you must buy & sell<br />Property will require an independent valuation by a qualified valuer<br />ATO will not be able to give binding rulings<br />View that rulings could become contrary to retirement income policy<br />No requirement to provide key fund information on an annual basis<br />Deemed to be an unnecessary administrative burden and increased in cost<br />Are trustees getting enough info to appropriately measure the benefits of running their own SMSF?<br />
  20. 20. Implementation timeframe <br />
  21. 21. SMSF Trustee Academy<br />SMSF Advisor Academy<br />Education (free)<br />Full access to the Trustee Academy<br />Monthly web-based SMSF training (update)<br />Special topics webinars<br />Step-by-step professional guides<br />White-label content to generate revenue for your business<br />Advisor document creator<br />Advanced training days<br />Trustee Webinars <br />Step-by-step guides<br />Investment markets from panel of leading experts<br />Trustee document creator<br />Important dates<br />Discounts to Trustee days (face-to-face)<br />‘thedunnthing’ blog<br />Education videos<br />Educational content<br />SMSF calculators<br />Ability to participate in some webinars<br />New & events<br /><br />Visit the SMSF Academy TV to watch our new videos<br />SMSF Technical/Strategy Library<br />Advisor - $770 or $2,200 (inc. GST)<br />Membership - $330 (inc. GST)<br />
  22. 22. The SMSF Academy<br />Official launch – mid/late Feb 2011<br />First monthly SMSF eCPD update – late Feb 2011<br />Visit The SMSF Academy YouTube channel<br />New videos just launched including:<br />Thinking about SMSFs<br />Setting up a SMSF<br />Trustee Roles & Responsibilities<br />Money when you’re gone – death benefits <br />More to come in January 2011<br />contributions, investing, benefit payments, borrowing<br />Register on website to receive future communication regarding launch <br />
  23. 23. Thank you<br />Aaron Dunn<br />B.Bus (Acc) CPA SSA<br />Managing Director, The SMSF Academy<br />Tel: 03 9351 0183<br />Mob: 0488 055 836<br />Email:<br />Web:<br />Blog:<br />